Foreign Currency Direct Foreign Currency Direct
Open an account

On this symbolic day of 29th March the pound is still proving resilient having seen some spikes throughout the week. Volatility remains high whilst the British constitution is unravelling the process of Brexit. Today had been set as the day that Britain would leave the EU after nearly three years since the 2016 referendum. A vote will now go ahead this afternoon on the withdrawal agreement which will help determine the outcome of Brexit.

Currency Pair% Change in 1 monthDifference on £200,000
GBPEUR2.7%€6,360
GBPUSD2.8%$7,380
GBPAUD2.6%AUD $9,960

The Commons speaker John Bercow restated yesterday that the government cannot bring the same proposition back to parliament for the third meaningful vote. The government has found a way round this by voting only on the withdrawal agreement and not the political declaration. The withdrawal agreement tackles the divorce settlement and the contentious Irish backstop.

GBPEUR interbank exchange rates this week fell to lows of 1.088

If the deal is voted through then the pound may strengthen although the outlook is still far from clear. The Prime Minister has stated that she will stand down “before the second phase of negotiations,” but no date has yet been offered. The top job will then almost certainly go to a Leave supporter which could result in renewed direction in the negotiations which will tackle the thorny issue of trade. This is likely to cause more volatility for sterling exchange rates for the foreseeable future whilst a trade deal is thrashed out.

If the withdrawal agreement does not pass then it opens the door to a long extension, a general election or a no deal Brexit on 12th April. With parliament still gridlocked a general election could start to look like a serious possibility although whether that would break the impasse remains questionable.

UK GDP figures to be released

UK Gross Domestic Product numbers are released this morning at 09:30 but will inevitably be overshadowed by all the latest political developments.

Clients with pending requirements would be wise to get in touch with the trading floor to consider taking the risk out of the volatile currency markets in these rare times in British politics.

News

Bad Start to the Week for Sterling as UK PM Health Causes Concern

A Bad Start to the Week for Sterling as UK PM Health Causes Concern

After a troubled start to the week for Sterling due to Boris Johnson's hospitalisation, the pound has recovered some losses following news that the PM was sitting up and in good spirits.

By Jonathan Sherman
COVID-19 Risk to UK Government a Short-Term Factor for Sterling

COVID-19 Risk to UK Government a Short-Term Factor for Sterling

As Boris Johnson and other cabinet ministers contract COVID-19, investors worry about the effectiveness of the UK Goverment.

By Lauren Buckner
UK Economic Data Indicates an Upcoming Recession

UK Economic Data Indicates an Upcoming Recession

As the UK enters its 3rd week of lockdown, economic data starts to show the strain on the ecocomy due to the coronavirus.

By Chris Doane
Read more articles

 

Download our monthly currency forecast

Download here

 

K. Edmonds

France

James and his colleagues are always courteous and helpful. I have also never been able to find rates of exchange that are more competitive. I am particularly impressed with the service, as I am not in the habit of transferring massive amounts!

Read our testimonials

R. Lane

UK

As always a really quick and easy transaction. James is very knowledgeable and helpful. Great rates.

Read our testimonials

S. Pearson

Always helpful and they always give rates at the very top of the range. Quick transfers to our french bank account – highly recommended. Well done James Lovick 😉

Read our testimonials
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.