We’ve known the deal has been coming for a while, which may explain why buying Euro and Dollar rates only flirted upwards by half a cent of so yesterday with the confirmation of the agreement between the DUP and the Conservatives.
Call the £1bn investment in Northern Ireland what you will, but currency markets themselves will be much more focused on developments later this week, and how the Government’s policies will be impacting the Brexit agenda.
Whilst headlines will certainly grab the £1bn fact from the DUP arrangement, we have heard little so-far as to how the special situation of Northern Ireland, sharing a land border with the Eurozone like Gibraltar, will affect the Government’s hard brexit aims.
The ability for free travel, Custom’s Union, and economic access are all on the table, and Theresa May will be forced to clarify this at least to some extent during Parliamentary debates this week, and for Thursday’s vote on the Government’s agenda.
Any hints of concessions will very likely see a heavy spike in the Pound. Personal political views aside currency markets are one which have traditionally hoped for stability and certainty. A softer break from the EU comes under this umbrella, and repeatedly since the Referendum, suggestions to this effect have played well with Sterling’s value.
So at this point the Pound is expected to improve at the end of this week with some stability re-established to the UK political arena. The real question is whether Sterling can make significant gains on buying Euro, US Dollar and Australian Dollar rates of exchange back above the respective 1.18, 1.30 and 1.75 levels which were available only last month.
As my article at the weekend suggested the urgency is still very much in the realm of Sterling buyers in my opinion, with the pressure keeping the Pound cheap from a calamity of election about to be relieved. If you are selling Euros, US Dollars or Australian Dollars for Sterling and wish to discuss your options, you can contact me immediately by calling 01494 787 478 and asking the reception team to be put through to Joshua.
Conversely, Euro, US Dollar, and Australian Dollar buyers do not face the same level of urgency and, as such, can also call or email me on email@example.com to discuss a strategy for your transfer aimed at maximising your currency return.
I have never had an issue bettering the rates of exchange offered from high street banks or alternative currency brokers, so a brief conversation could save you thousands on a prospective transfer.