The Pound has gone from strength to strength in recent days owing to news that the UK seems to be edging closer to agreeing a Brexit deal. Sterling hit the highest point against the Euro since May yesterday and provided our clients with an excellent opportunity to buy Euros with Sterling. This recent surge in the Pound’s value has provided clients with an additional €9,000 on a £200,000 transfer now compared to just 6 weeks ago.
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Another contributor to this strength came yesterday with the release of UK Gross Domestic Product (GDP) figures which showed that the UK economy grew by 0.7% between June and August. This also highlighted the fastest pace of growth since February 2017, rebounding after the poor growth numbers in the Spring where the weakest growth since 2012 was noted. However, the month of August showed stagnant growth at 0% compared to the month previous, which had been expected to grow by 0.1%. Industrial Production and Manufacturing Production figures were also released yesterday for August and showed an improvement compared to expectation.
Brexit negotiations have been heating up over the last week, with both the UK and EU trying to overcome their differences regarding the biggest hurdle in negotiations so far - how the border between the UK and Ireland can be kept open after the UK leaves the EU. Michel Barnier, the EU’s Brexit Negotiator, requested ‘decisive progress’ to be made in negotiations ahead of the European Council meeting being held next week which will include 27 EU nation leaders. The meeting will be held in Brussels next Wednesday and Thursday, and I would expect further volatility for the Pound in the lead up to this pivotal summit.
Reports are now emerging that the UK and EU could come to an agreement on a Brexit deal by as early as Monday. Meetings are taking place behind closed doors, however rumours are circulating that both parties are coming to agreements regarding the Irish border, although some differences still remain. Michel Barnier has also confirmed that a Brexit deal is ‘within reach’ next week, and that 80-85% of the terms had been agreed. If a deal is reached over the coming days I would expect the Pound to strengthen significantly, and clients looking to buy Pounds may look to move sooner rather than later. Clients with Pounds to sell could benefit from keeping in touch with their account manager here so that we can alert you of any spikes as they happen.
Simple, fast, great rate. Speedy uncomplicated transaction with no commission and very good exchange rate. Friendly service
We have been using Foreign Currency Direct for more than 10 years. They are very competitive and customer service is excellent.
Excellent friendly service always. We have used Foreign Currencies Direct for many years and always get an excellent rate and service. Can’t fault them.
Everything was managed perfectly. I felt secure in my transaction with foreign currency direct. Nothing was too much trouble and I would certainly recommend their services.