The Pound enjoyed new two month highs against most of its pairings until very recently. Many of our current customers have been wondering why the sudden drop in the Pound heading into the seasonal period despite little economic news being released and Parliament having closed for the festive period – therefore limiting the amount of Brexit related and market upsetting news to be coming out.
The main culprit is the long awaited feature of profit taking in the marketplace which markets and traders have been gearing up for over the past few months.
Speculator activity can drive Sterling’s value, just as much as positive economic data or a sudden outburst from a world leader. The holiday period surrounding the end of the year is where such speculators are wary. They will not be at their desks to protect their positions whilst markets are still open on non-bank holidays between Christmas and New Year.
The safest and most common thing to do is simply to funnel your capital into safe haven currencies proven to hold their value, such as the USD, Swiss Franc and Japanese Yen.
Normally the Pound performs relatively well during this period, but it is now seen with greater anxiety after recent events. In light of the Referendum.
The sell-off of Sterling in favour of alternative currencies is why the Pound is struggling against all of its major pairings heading into the Christmas period.
This should reverse as normal activity resumes, but you cannot guarantee anything in this current and abnormal marketplace.
I strongly recommend that anyone planning a foreign currency purchase using Sterling in the near term should contact their account manager here to discuss the options open to you to protect yourself against any further downturn, and the massive gains made by the Pound against most of its counterparts.
A very Merry Christmas from all of us at Foreign Currency Direct, we are open today but will close for the Christmas period. Our offices will re-open on Wednesday 28th December, if you need to make a transfer today please feel free to call us on 01494 725 353 or by emailing firstname.lastname@example.org.
Would not hesitate to use again, Joshua from FCD looked after us very well and we were able to get a good rate of exchange, the whole process was very quick and painless.
This was a faultless service from start to finish. Our contact, Joshua, could not have been more professional and efficient. He guided us excellently through all the stages of transferring money to the UK. Joshua even managed to get us the best exchange rate available at the time, and he did this with a pleasant manner and exceptional politeness.