Theresa May’s Appointment could Steady Sterling (Daniel Charles Johnson)

It has now been confirmed that Theresa May will be sworn in as Prime Minister later tomorrow. David Cameron has to formally tender his resignation to the Queen and then the new Prime Minister can take the reigns. Following the news of Theresa May’s impending appointment GBP rallied against the Euro moving into the 1.18s. With a Prime Minister in place I think Sterling has the chance at a gradual rally, this may well be hindered however by the high probability  of a rate cut and rumours of quantitative easing (QE). For those that are unaware QE is pumping money into an economy in order to stimulate growth. This does cause the currency in question to weaken as will a rate cut. If the rate cut does not take place at tomorrows’s Monetary Policy Committee (MPC) meeting then the rate cut could well occur at next months meeting.

Personally, if I was a Euro seller I would be very tempted to move under current market conditions, although there is a UK rate cut on the cards it is hardly a secret and thus the market will have factored in this possibility so I would not expect a large drop in Sterling value. Based on this I would not procrastinate for small gains. Euro sellers are currently in one of the best positions to sell in the last three years.

If you have a currency requirement it is important to be in touch with an experienced broker. The timing of your trade is key during such a volatile  times, If you have a seasoned broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to assist with your trade I will be happy to help. Let me know the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving in comparison to high street banks. Please do get in touch by contacting me at [email protected]. Thank you for reading my article.