Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting a number of currency exchange rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
Since the major political parties released their manifestos sterling has lost momentum as the Conservatives lead has narrowed. It has been reported the Conservative plans for healthcare and the elderly has not been received well whereas Labour’s plan to increase income tax for people earning over £80,000 has been supported. In a recent poll 6-10 people were in favour of the rise.
In addition Jeremy Corbyn has tried to tap into the younger vote which will have a major impact on who will win the election. He has stated he plans to abolish tuition fees for university students. In turn this could save upcoming university students just under £30,000 therefore you can see why this could sway the younger vote and parents of students.
In regards to currency, the closer we get to the election I expect the polls to continue to narrow therefore exchange rates could fall further. If you are buying a foreign currency and do not have all of your sterling available you can use one of our forward contact which allows you to book the rate now and pay later. For more information feel free to call the trading floor on 01494 725 353.
Even though polls are narrowing I still believe the conservative party will win a majority therefore Brexit negotiations should start shortly after. The main talking point will be the ‘divorce settlement’ and how much the UK will have to pay to leave the EU. Brexit Secretary David Davis has stated the UK will not pay a penny, whereas EU officials have been quoting €100bn. It’s very difficult to predict the outcome of these negotiations however if the UK hits a stumbling block early on you would expect sterling weakness and so far both parties do not look like they have any intention of backing down.
Economic data is light for the week ahead. The only data release of note to keep an eye on is Consumer credit and mortgage approvals released Wednesday at 9.30. Both releases are set to decline therefore this may cause the pound to lose further value.
Thank you for reading today’s market report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me here.
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.
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