Anyone with a buying or selling Euro or Dollar requirement have been waiting either with anxiety or excitement as to when the announcement would come.
Now we have it. The upcoming Conservative Party conference seems to have forced Theresa May into clarifying the Government’s current timeline for enacting Article 50. Since she was going to have to make an hour long speech, frankly it would have been impossible to avoid the subject…
There were already heavy hints floating around, but there was still wiggle room. Now there is a definitive timeframe for when the formal process to leave the EU will begin, and this will be by March 2017.
So what does this mean for anyone with a Euro or Dollar buying requirement?
Markets have aready shown overwhelmingly that they are in favour of the UK remaining in the EU. News of delays in the past, most notably when May took office immediately following the ‘Leave’ vote and calmed markets by saying no moves will be made in 2017, have allowed some respite for the Pound – improving GBP/EUR, GBP/USD and GBP/AUD buying rates immediately.
Official confirmation of this from May will certainly be enough to spook markets in the short-term. This is another reason why May chose to casually release the news whilst financial markets are closed over the weekend.
What’s more interesting is that this news came out as we are about to begin a new financial month, with fresh data to be released on how global economies performed during September. Currency values will change based on the positive or negative nature of the news.
What will make this news more poignant is that we have now finished the first full quarter in the UK since the Leave vote. The other question on the lips of every global financial institution is how close is the UK to recession? This is defined as consecutive economic contractions across two financial quarters. So soon we will finally know.
Anyone with a buying or selling Euro or Dollar requirement are about to be thrown into a period of heavier movement after a few months of rates being in ‘limbo’. In this period a premium will be put on being able to move quickly should any tempting opportunities emerge – and there will still be opportunities – the Pound is not the only currency suffering in this wave of global uncertainty.
I offer a proactive service to keep my clients informed of any changes in market expectations and movements to ensure you are not ‘last to the party’ and also offer options to safeguard your transfer from any adverse movements.
Anyone with a GBP/EUR, GBP/USD or GBP/AUD requirement can contact me over the weekend whilst markets are still closed on firstname.lastname@example.org to discuss how best to approach the markets given your particular situation.
You can also fill out the form below, and I will reply as soon as I am able to.