The impact on currency of the Brexit vote (Tom Holian)

If you’re looking to either buy Euros or sell Euros then we could be in for one of the biggest events for years on the foreign exchange markets this week.

Many people are extremely concerned of what may happen when the UK votes on the EU referendum on Thursday and we should know the outcome by early Friday morning.

Having personally worked in the currency markets since 2003 I have worked during the credit crunch era, the Scottish referendum and the various general elections during this time but this week we could even bigger movements for GBPEUR rates compared to these previous events.

Over the last 3 weeks Sterling has come under huge pressure vs the Euro falling by as much as 7 cents from the high to the low. This has been caused by the uncertainty of the Brexit vote and the Leave campaign has certainly gained a lot of momentum during this time.

I have been writing these articles on this particular subject for some time now and I personally expect the UK to vote to Remain in the European Union and if so we could see the Pound recover some of these losses.

The various opinion polls have shown the Leave campaign in the lead but often when people want change they are more vocal about the subject and also the polls are relatively small compared to the many millions who will vote next week. Indeed, the polls for both the Scottish referendum and the general election were completely different to the eventual outcome.

However, what is crucial is how close the vote may be as if we see only a small minority in favour of staying in this could cause further uncertainty for Sterling as there is clearly an appetite for change with the UK’s relationship between the European Union.

For anyone worried about the potential outcome of the referendum there is always the option of buying a forward contract which means even if you don’t have the full amount of money available or don’t have to make a payment for a few months then you can fix your exchange rate for a future date for a small deposit.

If you have an upcoming currency transfer due soon then contact me for a brief explanation of the process of how I can help you save money on exchange rates compared to using your own bank.

I look forward to hearing from you. Tom Holian [email protected]