Today the FTSE100 has reached all time highs however it appears the reason for the improvement is off the back of the pounds demise. Many companies within the Index generate their income (revenue) outside of the UK. In basic terms investors are selling off their pounds and are investing into the stock market as this seems a safer option.
Presently the Conservative party are facing pressure from Labour MPs as they want to see Theresa May’s objectives before she triggers Article50. So far Theresa May has indicated she will be enforcing a hard Brexit, which means the UK can tighten up their borders however the UK will not be able to trade in the signal market for free.
Since the UK decided to vote out of the EU GBPEUR and GBPUSD have dropped 20 and 27 cents. To put this into monetary value a 200,000 Euro and US dollar transfer is now £29,000 and £30,000 more expensive!
As I stated in my previous article I wouldn’t be surprised to see the pound continue to lose value and consequently sterling exchange rates will fall. If you are buying a foreign currency it may be worth buying sooner rather than later, however its certainly worth analysing both currencies as there may be spikes in the market you wish to take advantage of in the near future.
For people repatriating foreign currency, if you have time, I would recommend being in the position to perform an immediate trade and allow me to monitor the market for you and keep you updated.
Feel free to email me the currency pair you are trading (GBPUSD, GBPAUD, GBPCHF etc) the reason for your trade (company invoice, buying a property) and I will email you with my forecast for the currency pair email@example.com.
My area of expertise is property purchases and sales. Therefore if you need to purchase a foreign currency or you are about to complete on a sale abroad, today is the day to get in touch to discuss your options and to get an understanding of how we can save you as much money as possible.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **