The Pound has endured a torrid start to 2017 so far, falling by as much as 3% since the end of December.
This has resulted in huge savings for any clients who have sold properties across the Eurozone and are looking to repatriate their funds to the UK, with a €200,000 transfer in to Pounds resulting in as much as an extra £5,000 if timed correctly.
We have had a number of clients take advantage of a limit order over the past few days, allowing you to specify a target rate of exchange which will be automatically purchased by our systems when reached. This is a free service so contact your account manager here to find out how you can take advantage of this and the range of other contracts that we can offer to help you time your currency exchange in this volatile market.
The main reason for the Pound’s decline has been the looming Supreme Court ruling on whether or not parliament will have their say in Brexit negotiations. We saw Sterling hit a fresh two-month low yesterday morning and this is, in my opinion, a very nervous reaction from the market as we await the result of the ruling. The only problem is we do not yet know the date for the outcome and this seems to be causing further exchange rate volatility.
There is also a huge amount of uncertainty as to how Brexit will be carried out, with the two likely options seemingly a ‘hard’ or ‘soft’ exit from the single market. Theresa May weakened the Pound at the beginning of the week when she hinted towards a ‘hard’ exit which the markets did not take kindly to. Chancellor of the Exchequer, Phillip Hammond then added further fuel to the fire yesterday by admitting that there was no decision yet on whether or not to stay in the single market after Brexit, which seemed to contradict the PM’s previous comments. With so much uncertainty in the air at the moment, staying in touch with your account manager here to keep up to speed with the latest market movements is crucial.
We did see the Pound begin to make a minor resurgence yesterday after the FTSE 100 reached a 9th record high yesterday, and ironically a lot of these gains for the FTSE are due to the weakening of the Pound since Brexit. The falling Pound has created a big opportunity for international investors and as a result we have seen a wave of investment in to UK businesses. On top of this, UK economic data strength would appear unflappable despite the current headlines, with the Christmas rush in December helping Aldi and Sainsbury’s report record sales. This may set the tone for today’s data sets in the form of industrial and manufacturing production for November and GDP figures for Q3 of last year. These are all set to show an improvement on previous figures and could therefore provide a brief respite for the Pound and an opportunity for Euro buyers.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me directly at email@example.com.
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.