Sterling exchange rates have surged over the trading day as the markets digested another extension to the deadline as both the UK and EU have decided to continue trade talks and both sides seem like they are heading closer to a deal.
Sterling Recovers from Last Week’s Losses
The pound dropped towards the end of last week as traders started steering clear of the pound due to concerns over a no deal Brexit being announced on the weekend. Those concerns were lifted over the course of yesterday as both Boris Johnson and Ursula von der Leyen stated that talks would continue and that there was indeed an appetite to get a deal done, so it made sense to carry on.
Reports over the course of the day have suggested progress with a few of the key sticking points and it now seems that a level playing field is the main sticking point that is holding back a deal from getting over the line.
It does feel like we may have a possible trade deal in place in the next week or so and that off the back of this sterling exchange rates could be in for a spike, however as always this is a situation to approach with caution if you have a pending currency exchange to carry out as there is still the possibility that talks could fall through once again which may lead to sterling exchange rates dropping rapidly and significantly too.
Considering we have a fairly light economic calendar at the start of this week it is likely that any news on Brexit talks will be the key driver to the pounds performance and as those of you that have been watching the pound in recent weeks will know, news can come without warning and exchange rates can react rapidly so it is key that you have a close eye on rates, or that you protect yourself with a market order should you lave a large transaction coming up.
A market order is where you can arrange to lock into a currency at a specific rate should it become available and helps you to take advantage of a spike in your favour should this happen without warning, or to protect yourself from adverse movement should there be a swift drop in exchange rates.
If you have an upcoming currency transfer or you would like to learn more on the factors impacting GBP to EUR exchange rates, feel free to contact me directly using the form below.