Sterling’s value has been driven down since the UK’s decision to leave the European Union (EU), following our referendum vote back in June. Since then we have seen increased volatility on all GBP exchange rates, with particular attention being paid to heavy losses for the Pound against both the EUR & USD.
Sterling’s losses increased following UK Prime Minster Theresa May’s comments last week, where she stated that the UK would trigger Article 50 in March 2017. This will formally start our exit from the European Union and despite this announcement removing some of the uncertainty surrounding the situation, the markets reacted negatively and the Pound has once again found itself on the back foot.
GBP/EUR rates have dropped to some of the lowest levels seen in the past five years (1.1051), offering EUR sellers a fantastic opportunity to take advantage of the current dip. There is no guarantee that the current trend will continue and you could argue that many of the negative factors surrounding the UK economy have now been integrated, at least to some extent, into the current GBP/EUR exchange rate.
GBP/USD have also fallen through the floor, with the pair hitting 1.2130 at today’s low. With so much focus on the current election campaign in US and the focus on Donald Trump’s almost humorous ability to further unravel his fading hopes of becoming US President, many investors have turned away from a strong run of economic data, which has helped propel the greenback to its current highs. Whilst Sterling remains handicapped due to the current Brexit dramas, it is almost unheard of to see the USD trading close to 1.20 on the exchange and for this reason I would be looking to sell any USD positions and take advantage of the current rates.
If you have an upcoming Sterling currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.
If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on email@example.com