Last week was the best week the Pound has had vs the US Dollar since October of 2009, as worries over the proposed ‘Hard Brexit’ eased.
Fears eased as England’s High Court ruled last Thursday that the Government needs parliamentary approval before starting the Brexit process, and the Pound has boosted across the board off the back this news after having a particularly difficult October.
The Pound had been generally declining against all major currency pairs since UK Prime Minister, Theresa May announced plans to invoke Article 50 at the end of March next year, which was considered a ‘Hard Brexit’ approach. Through October the currency lost around 5% vs most other major currency pairs so the High Court’s decision last week has of course been welcomed by those hoping to see Sterling strengthen.
Those hoping to see the Pound continue to climb, and it’s worth noting that the currency has held onto its gains from last week, will be hoping for further positive news surrounding the UK economy and a potential ‘Soft Brexit’. I think there will be movement within Sterling exchange rates when the outcome of the governments appeal against the High Court’s decision last week is announced, and if the government are unsuccessful I expect to see the pound rally once again.
On the other hand if the government is successful in the appeal, we can expect to see the Pound decline so those with a currency requirement involving the Pound would be wise to get in contact, as if there’s a big swing in exchange rates we’re able to make our clients aware very quickly.
Overnight the outcome of the US election is likely to be announced, and I think that a Clinton victory is likely to push the Pound downward as the US Dollar is likely to rally.
If you are planning to use GBP to buy or sell a foreign currency, it’s worth your time getting in contact with me on email@example.com in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.