According to the ex-president of the European Council a no deal Brexit could even lead to the break up of the UK. Herman Van Rompuy went on to say that a no deal situation could have a big impact on various regions around the UK including Scotland. More in today's Sterling report on how this could impact the Pound in the coming months, the table below shows the range of exchange rates for a number of currencies for the past 30 days, highlighting the importance of timing your transfer to maximise your return.

Currency Pair% ChangeDifference on £200,000
GBPAUD2.5%AUD $8,640
The key reason for Sterling’s current vulnerability however is Brexit. If there is one thing investors do not react well to it is uncertainty and at present it is extremely difficult to call whether or not a deal is going to come to fruition.

Van Rompuy went on to say that the UK government is scaremongering in order to encourage the EU to look at compromising on a deal. These comments, were supported by former Brexit Secretary David Davis, who believes that the fear the UK Government is creating if a no deal Brexit happens, is undermining the UK’s attempt to negotiate going forward.

The UK Government recently published 24 out of 80 documents outlining some advice for UK businesses if a no deal situation occurs. With more to be released in to next month it appears as though the Government is planning for this situations and this has led to the Pound trading at its lowest level vs the Euro all year creating some excellent opportunities to sell Euros to buy Pounds at the moment.

Meanwhile, Brexit Secretary Dominic Raab has claimed that he wants the UK and the European Union to come to an agreement but he has also said that it is important for the UK to be prepared for any eventuality.

Feelings on the continent appear negative towards the UK

The feeling on the continent according to the various mainstream media articles is that they are not impressed by Dominic Raab’s Brexit guidance published last week.

In Germany the sentiment is that the ‘Brits are staring into the Brexit abyss’ meanwhile in Belgium one journalist for a national newspaper was quoted as saying ‘only the future can show...but it is certain that it will be a lose-lose story.’

As we move into the last week of the month there is little to no economic data due out from the UK so all eyes will turn to elsewhere economically so make sure you keep in close contact with your account manager during the course of this week who will happily keep you updated with what may be happening. 

The main mover for Sterling exchange rates is likely to come from the continued Brexit talks so it is vital you follow the Brexit news.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

Download our monthly currency forecast

Download here


Read more articles
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.