The pound is on the cusp of a very volatile and symbolic period. The Supreme Court ruling on whether UK Prime Minister Theresa May must consult Parliament is expected imminently and if it is not made this week then realistically it will be offered next week some time.
Considering how much is riding on this decision then I feel that the judges will want to move as quickly as possible in producing the outcome. This topic has been discussed at length on this blog but for me at this point in time the verdict will be the single largest driver for the price of sterling as we approach the end of March. The problem is that nobody know what the outcome will be which is why the markets are likely to react wildly.
Any clients looking to move a sizeable amount of currency in either direction would be wise to get in touch to be able to take advantage of the market volatility expected in the coming days. Those clients needing to sell Euros could potentially see a very good opportunity around the corner. Similarly those needing to sell Australian dollars may also see a win outcome on the exchange rates.
Should Theresa May win the appeal then the pound is likely to see a very sharp fall which may be seen over the course of a few days. A good few percent could be wiped off sterling’s value very quickly and it will dampen hopes of those opposing groups which are gathering momentum which are trying to keep Britain in the single market.
Data is light for the UK today with no economic releases either today or tomorrow. Those client with a GBP USD requirement see a host of data this afternoon to include US jobless claims, import / export data and speeches from some of those policy makers on the US Federal Open Market Committee (FOMC). The dollar is also likely to be impacted by this latest mind-blowing surrounding President-elect Donald Trump which has supposedly been produced by Christopher Steele, the former British MI6 agent. The former agent is now on the run in fear and this story may have some mileage in it yet.
GBP EUR has seen a poor start to the year although things have stabilised marginally with a lift yesterday and another jump higher this morning taking levels for his pair 0.5% higher to 1.1550.
If you would like further information on buying or selling pounds and to discuss how we can assist 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 firstname.lastname@example.org