The last couple of months have been volatile for sterling movement, with current mid-market levels above 1.13 against the euro, which is an increase of over 3 cents since the 12-month lows experienced at the end of August.
|Currency Pair||% Change in 1 month||Difference on £200,000|
It’s been a similar story for the GBP/USD pairing, as the pound has bounced back from the 1.27 levels seen mid-August, with movement of around 5 cents over the period and current levels fluctuating above what appears to be a resistance point of 1.30.
In monetary terms this is a considerable amount, as a well-timed transfer at the highest trading points would have achieved around $10,000 dollars more than it would have at the lowest.
In light of current political uncertainties such as Brexit, putting pressure on industry and financial markets alike, I feel that there are arguments to suggest that sterling has held well considering and if further clarity surrounding the UK’s exit proposal can be provided, we could see further favourable movement in the short-medium term.
UK Prime Minister Theresa May appears to be under added pressure following her return from what has been described as an unsuccessful summit in Brussels last week, with new reports suggesting that she is now facing a fight to save her leadership and potentially has until the end of the week to do so.
This warning has come from frustrated Conservatives, who have called for the PM to attend a meeting with the “1922 committee” on Wednesday.
The committee, dubbed the “Men in grey suits”, consists of Conservative Party back benchers who meet weekly to discuss views surrounding party front benchers and has in the past played an influential role in deciding on the party leader.
This meeting is significant because of recent reports suggesting that party support for the PM has diminished, with MP’s close to triggering a vote of no confidence in the party leader.
Her attendance at this meeting is significant, as recent reports have suggested that party support in the PM has diminished, with MP’s close to triggering a vote of no confidence in the party leader.
In order for such a vote to be triggered, 48 letters are required to be delivered to the party Chairman and various reports over the weekend have indicated that as many as 46 have been prepared and are ready for submission.
This news has come to light as the capital experienced its second biggest demonstration in 10 years on Saturday, with almost 700,000 people taking to the streets to protest the original Brexit decision and demanding a fresh referendum.
There is no notable UK economic data to be released this week, but investor attention will be mainly focussed on the developments leading up and in response to the ‘1922’ meeting on Wednesday, as any indications of a change in Government has the potential to fuel market volatility.
Clients with an upcoming transfer involving GBP should consider their positions in anticipation of potential volatility and could benefit from considering a ‘limit order’ or ‘stop loss’ option, in order to manage their exposure.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.