UK Prime Minister Theresa May faced further problems yesterday when she suffered her worst defeat in the commons, this was the worst defeat for any Prime Minister in 40 years.

Currency Pair		% Change in 30 days	Difference on £200,000
GBP	EUR	3.18%	€7,120
GBP	USD	3.84%	$9,740
GBP	AUD	5.37%	$18,500

European Council President suggests flexible Brexit extension

Parliament voted that the Government must release the legal advice given to the cabinet in regards to Brexit. Furthermore they also voted that the Government will have a say if Theresa May fails to get the deal through on the 11^th December.

For clients that are buying or selling the Pound in the coming months, it’s important to understand that Sterling currency pairings are set to face extreme volatility.

Governor of the Bank of England Mark Carney in recent weeks has warned that GDP could fall by 8%, the housing market could fall by a third and Sterling could fall 25% if the UK crash out of the EU with no deal.

Should I formulate a strategy before the 11^th December?

Quite simply, yes! If you are planning a currency transfer in the short, medium or long term, today is the day to get in touch with your broker to discuss a strategy.

There are two outcomes that could materialise on the 11^th December. Either Theresa May gets a deal through Parliament, which is likely to help the Pound gain value against the major currencies, or Theresa May fails to get Parliaments approval, which could cause the Pound to crash and then anything could happen.

In my opinion I believe Theresa May’s position as Prime Minister will be coming to a close as she has run out of time and her plan quite simply does not cut it with MPs. Short term I expect she would try to renegotiate with Brussels but the likelihood is she will not get further concessions which therefore would lead to her resignation. Hardline Brexiteers will feel that a hard Brexit is more likely, but then at the same time remainers will feel that a people's vote could be on the cards. Either way, the uncertainty will cause problems for the Pound and I expect Sterling will hit multi year lows.

If you are planning on making a currency transfer which involves buying or selling Pounds and you have budgeted on current levels, anything could happen therefore the safe option is not to gamble and get something purchased before December 11^th.

Download our monthly currency forecast

Download here

News

25th November 2020

UK’s Heavy Investment in COVID Vaccines Offers Support to GBP

As more information on vaccines and the deployment across the UK population is announced, could the pound see an improvement in value?

By Steve Eakins

24th November 2020

Sterling Rises on Brexit Deal Optimism and COVID-19 Vaccine Hopes

The pound enjoyed an excellent start to the week with reports of the AstraZeneca vaccine delivering hopes of better times ahead.

By Jonathan Watson

Sterling Exchange Rates Set For Volatile Few Days as Brexit Trade Deal Heats Up

20th November 2020

Could Sterling be Set For Volatile Few Days as Brexit Trade Deal Heats Up?

Considering the issues currently being negotiated we may have expected a little more volatility from the pound this week, is this the calm before the storm?

By Daniel Wright

R. Blake

First rate service from Dayle Littlejohn in dealing with our transaction from Cyprus. He kept us updated at all times and we appreciated his sincere manner.

Read our testimonials