How far can the pound fall?

The pound has actually made some very small gains today but the outlook remains grim in my opinion. Despite the markets bouncing off the bottom today I do not think there is going to be a huge amount to be cheerful about and the rally of this morning quickly halted. The UK has no Prime Minister, the EU say there will be no special deal for the UK and business confidence and investment is down. There is a harsh choice for the next PM will it be abandoning free movement of people or retaining access to the single markets. According to the EU we cannot have both! If you are considering a currency exchange (£10,000 over only bank to bank exchanges please) please email me Jonathan on [email protected] to keep up with the latest news on how the pound is performing.

How much lower will GBPUSD drop?

The problem on this pair is the US Election is not far away which is bound to lead to uncertainty on the exchange rate. The prospect of a Trump Presidency has in my mind not bee properly factored into the dollar. The Brexit vote also makes a US Rate hike less likely which I feel is not being reflected on the pair. I expect this rate to trade between 1.30 – 1.40 until August before moving back to 1.40-1.50 August to September. From there the picture is less clear but a move back above 1.50 could not be ruled out. If you have any USD transfers to consider the USD is almost at a 30 year high against the pound. To understand the latest movements please email me Jonathan on [email protected]

Will GBPEUR hit 1.25?

For Euro buyers this is the question I am being asked most. Well I think Greek concerns and worries may resurface in the next few months and a top of 1.25 is possible, the negative impact of Brexit is also hurting the Euro. But I think sterling will be the main loser and would call lows in the 1.10-1.15 range up to September. From there much will depend on how Brexit negotiations but I think the pound will remain weak until we have certainty. If you have any Euro transfers on amounts above £10,000 (eg property sale of business transfer) please email me Jonathan Watson on [email protected] for more information on securing the best GBPEUR and EURGBP exchange rates.

Brexit may well not prove to be too bad in the long run it is clear to me the impact on sterling exchange rates has not completely been felt. Any signs of an interest rate cut or further Quantitative Easing could easily send the pound lower and I would be most worried about this prospect towards the end of this year or early next.

Sterling is at multi year lows against GBPAUD, GBPCAD, GBPNZD, GBPCHF and GBPZAR..  Make sure you don’t miss out..

  This aware winning blog has enabled tens of thousands of people globally to save money on their currency exchanges through helpful, friendly knowledgeable information from experienced currency brokers. As one of the Chief contributors here I would be delighted to hear from any of you wish for information at this important historic time for the pounds. An email will only take you a minute and the savings on offer could be thousands, what have you to lose. If you have a currency exchange to consider and would like to learn the latest exchange rate forecast please email me Jonathan Watson on [email protected].