The pound saw very mixed market movements across all of the major currencies following yesterday’s US Presidential win by Donald Trump before turning full circle with huge gains for sterling exchange rates. It interesting that calm was restored to all of the financial markets yesterday afternoon with global stock markets rallying and the pound rocketing against all of the major currencies. GBP EUR was up to 1.14 by close of business which is welcome news for those needing to buy Euros. There is currently an excellent short term opportunity for buying Euros.
GBP USD has strengthened but only marginally and considerably less that what some commentators had predicted in the event of a Trump win. Many had been expecting considerable dollar weakness although it still early days following the result.
As if Britain didn’t have enough uncertainty at the moment with Brexit still dragging its heels and a huge budget deficit for the country, the election of a new US president with an uncertain and untested global strategy could certainly shake things further for the pound as well.
The pound has made good gains against the Australian, New Zealand and Canadian dollars though -These currencies are known as commodity currencies due to their position of being producers of raw materials with their relevant mining sectors. In times of global and political uncertainty it is these particular currencies which perform badly and this has clearly been demonstrated following yesterday’s historic vote for new US President Donald Trump.
Let’s not forget Brexit though as for me this continues to be the single biggest driver for sterling exchange rates and will be for some time. The positive rhetoric towards President-elect Donald Trump from UK Prime Minister Theresa is a sign that Britain and the US could work well together on existing and new trade opportunities and could bear fruits in the medium term.
The Brexit jitters will no doubt keep the pressure on the pound but this Presidential outcome has so far has seen a good win opportunity for those holding pounds. 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 James. Alternatively, I can be emailed directly on email@example.com