The Pound has continued to show a strong hand during the early part of the trading week, following its positive strides against both the EUR and USD last week.
Sterling hit an eight-and-a-half month high against the Euro towards the end of last week, whilst it continues to find plenty of support against the USD around 1.30.
In fact, Sterling is enjoying an upturn in support against the majority of major currencies at present, as the UK gears itself for the upcoming general election on December 12th.
The turnaround in fortunes for the Pound seemed to stem from the removal of a potential “no deal” Brexit, which was clearly identified as a major market concern.
There was certainly a direct correlation between the rising threat of a “no deal” scenario and the pressure it put on the Pound when it was seemingly driven as a potential, if not necessarily likely outcome, to the ongoing Brexit saga.
Whilst the bookmakers are still favouring a Conservative majority as the most likely outcome for the election at 2/5 on, the probability of another hung parliament remains at 2/1. This may, in many people’s minds, not reflect the current standpoint in much of the media’s coverage of late.
In other news, Labour leader Jeremy Corbyn faced some awkward questions on yesterday’s This Morning show, over his ongoing row with the Jewish community in regards to comments he made back in 2018.
Whilst he eventually did in fact say sorry, it wasn’t received as positively by many senior Jewish figures, who felt it was too little too late.
GBP has remained well supported against the USD this week, trading just below 1.30 this morning ahead of the opening of European trading.
1.30 is historically a key benchmark for the GBP/USD pair, and as such may continue to provide some levels of resistance against any further advancement for Sterling this week.
However, the current slowdown in GBP’s upward spike is unlikely to dampen investors' confidence a great deal, with the Pound trading at some of the best levels we’ve seen in the last 18 months.
In other news, President Donald Trump’s impeachment hearing continues, with the outcome of this likely to have a significant impact on Trump's chances of winning a second term at next year's Presidential elections.
The latest report does not make for good reading for the under-fire President, with a panel leading the enquiry into the impeachment claiming that the evidence against Trump is “overwhelming”.
What impact this may ultimately have on the USD value is difficult to predict, but it is potentially another negative blot on the President's tenure, and one of which may yet have an impact on Trumps ability to lead the US. Thus there could be negative knock-on effects for the economy and USD, along with President Trump himself.
I switched to Foreign Currency Direct earlier this year, and I can honestly say they have been absolutely marvellous. Registering your client could not be easier, the Portal allows you instantly access your clients giving us full transparency, and my dedicated Account Manager Amelia does a fantastic job of keeping me informed.
Rob Harold is a pleasure to work with, he has an outstanding conversion rate from leads I put forward and provides those clients with an excellent service. By always keeping me informed at every stage, this helps me keep my sales on track at the vital time when payments are due.
I use Foreign Currency Direct for my own currency transfers and I recommend their services to our clients for currency exchange on Spanish property for purchases and sales through Costa Blanca Casas.
Always the best rate for me and my clients. As we have many clients at Girasol Homes we get 5 star service for them, and we expect it as well, always a personal and bright service. Highly recommended.