Sterling exchange rates have stumbled along once again this week, with very little in terms of economic data for the market to feed off of the focus has generally been on Brexit once again and, so far there has not been a huge amount of positive progress on that front either. The Sterling report discusses the issues still weighing on the Pound with the below table showing the range of exchange rates throughout the past week.
|Currency Pair||% Change||Difference on £200,000|
If you have an exchange to make in the coming days, weeks or months ahead then it may be prudent to consider your options as the closer we get to the potential of a ‘no deal’ Brexit the more that Sterling may suffer.
In general, U.K economic data has been reasonably strong and in a non-Brexit market I would have expected to the Pound to be a lot stronger than it is currently.
The issue is that Brexit is here, it is on-going and it will likely continue to be a thorn in the Pounds side until we see some positive developments.
If you are in the process of buying a property overseas and waiting for Sterling to gain strength then be very wary as this is a dangerous game to play in the current climate.
Unless you feel that Brexit negotiations are going fantastically well then it is hard to put together an argument as to why the Pound will gain ground against most major currencies in the near term.
Uncertainty can be one of the worst things a currency can have hanging over it, and Brexit is a major cause for uncertainty, as we head closer to the potential of a ‘no deal’ Brexit it is likely that exchange rates may suffer further.
A report yesterday released outlined the possible issues that may arise in the case of a no deal Brexit, this report made it into most national newspapers and the issues that were outlined suggested that there could be some testing times ahead unless the Government can get to work and hammer out a deal sooner rather than later.
This report led to GBP/EUR dropping into the 1.10s which was virtually the lowest point of the year to date.
With this in mind it may be prudent to consider booking either all or some of the currency you require, there is the option of a forward contract, where you can lock in a rate for the future with merely a small deposit. Contact our trading floor on 01494 725353 or email me here for further details on this extremely popular contract option at present.
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I decided to use this company after reading many blogs by Daniel Wright on the forecast of Sterling. He always seemed to get his predictions right and also seemed to have not only very good knowledge but a passion for the industry he is in. Daniel was not only informative but patient and gave us options on the lead up to our currency exchange.
I only have praise for the way this company make the stressful experience of Forex a simple process. Difficult to be specific but there is always the personal touch. Recently, with the BREXIT hysteria the dealers must have been very busy but Daniel Wright was always available or never failed to ring me when requested.
A totally reliable and trustworthy service. I have used them on three occasions now and my money has always come over on the agreed date at the agreed rate. Daniel Wright is a pleasure to deal with -patient, personable and professional.