Buying Euro and Dollar rates have seen their largest and most sustained gains since the day before the Referendum itself, when the Pound rallied heavily with the euphoric expectation in the financial world of a remain vote.
Since Wednesday morning with the confirmation of a Trump victory, the Pound has moved from strength to strength against the likes of the Euro and Dollar, fuelled entirely on market speculation as to what a Trump presidency may manifest itself as.
But it has not been the smooth rise upwards that some have stated. The first indications that Trump would would win actually saw the Euro strengthen heavily against the Pound.
To summarise briefly why, this is due to the relationship between the Dollar and the Euro. Given that USD/EUR is the most heavily traded currency pairing in the world, weakness in one currency tends to translate into strength in the other, as capital goes flying into the other currency in those situations – boosting its value through increased demand.
The nervousness towards a Trump Presidency was palpable. The Dollar weakened heavily and the Euro soared in value – pushing GBP/EUR down to 1.10.
Then Trump gave his most measured, conciliatory and unifying acceptance speech. This was entirely out of character, and market nerves surrounding a potentially divisive Trump evapourated incredibly quickly. Frankly I have taken much of this weekend to digest this reaction.
But with the Dollar suddenly strengthening with this increased fortune, a run has occured on GBP/EUR allowing it to reach heights of 1.16.
Similarly, the Pound has also gained from expectations that a Trump Presidency may actually be favourable to the UK’s position in negotiating a Brexit, particularly with the now suddenly frosty relationship between the US and some of Trump’s harshest international critics, the German government.
Nothing has happened yet, but pieces on the chess board have been moved to reflect a greater bargaining position for the UK. In this hypersensitive market, this is all it needed for buying Euro and Dollar rates to skyrocket to levels not seen since September.
With GBP/EUR, GBP/USD, and GBP/AUD still incredibly sensitive to political news, as always this market carries a hefty amount of risk alongside the potential for further opportunities, particularly after such a long dry-spell for foreign currency buyers using Sterling.
There are a number of options available through a specilaist currency brokerage that allow you to secure any peaks you are aiming for instantaneosly should they emerge. If the market begins to correct after a sudden spike, a few hours delay for you to act could spell a missed opportunity.
Furthermore, I offer a proactive service to keep my customers informed of market events and trends in order to ensure you remain a well informed purchaser, aware of the risk and opportunity in your actions.
I strongly recommend if you have a buying or selling Euro or Dollar requirement that you contact me whilst markets are closed over the weekend on email@example.com to discuss a strategy for your transfer aimed at maximising your currency return, and to hear the options open to you to safeguard your transfer from any adverse movements.
I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on an upcoming transfer.