With sterling falling month on month due to the UK’s decision to leave the European Union, this Thursday’s high court decision has thrown a spanner in the works for UK Prime Minister Theresa May.
The Prime Minister had stated that the UK would trigger Article50 in March, however the High Court has ruled that she (Parliament) does not have the power to invoke Article50 on her own and that all of the MPs in Parliament will have to vote before Article50 is triggered.
Since the decision Theresa May has said that Parliament will be challenging the High court decision in the Supreme Court in December and that she plans to stick to her timescales given last week. For people buying a foreign currency, the pound has gained momentum towards the end of the week however I believe the boost from this story will be short lived as Article50 will be triggered at some point.
This week the major economic event that will impact sterling exchange rates is the Presidential Election in the US. Republican candidate Donald Trump has narrowed the polls and appears to be neck and neck with Democrat Hilary Clinton. Donald Trump is seen as a risk to the US economy due to wanting to change lots of different policies, trade being one to note.
Speculators will be looking to protect their positions this week, whilst making profit, therefore expect major swings with exchange rates this week.
As I have said above the gains we have seen from the High court ruling could be short lived therefore for people buying a foreign currency taking advantage of the spike maybe wise. However depending on the currency pair you are trading (GBPUSD, GBPEUR, GBPAUD) the US election could swing rates in your favour this week or exchange rates could fall.
If you are looking for a currency provider who can keep you up to date with exchange rate movement whilst being able to offer excellent exchange rates, feel free to email me with the currency pair you are trading, the reason for your transfer and the timescales you are working to and I will respond with my forecast.
The type of clients I deal with on a day to day basis are high net individuals, property buyers/ sellers and business owners. In addition if you are already using a brokerage feel free to email me and we can compare exchange rates to make sure you are receiving the best rates possible.
Enjoy the rest of your weekend and I look forward to speaking with you Monday morning.