All eyes were on Phillip Hammond’s first budget and as expected the new Chancellor came out fighting.
This will be the last Spring budget and despite it being positive if somewhat underwhelming, there was no doubt that the UK economy was growing faster than expected this year. Growth forecasts for 2017 have been raised form 1.4% to 2%, with significant funding being made available for Scotland in particular, a likely ploy to try and diffuse any future referendum for Independence.
There is also talk of a Brexit ‘pot’ being put aside to help alleviate pressure on the UK economy, following the triggering of Article 50. This is still on course to be actioned this month, despite some speed bumps being put down by the House of Lords. Whilst there was talk of up to 60bn being put aside as a safety net no official figures have been confirmed and as such it will be interesting to note how this story develops as it could have a significant impact on Sterling’s value.
Despite the upbeat tone the Pound continued to find life tough going with further losses against the EUR & USD.
GBP/EUR hit low of 1.1498, with GBP/USD rates hitting 1.2144 this morning. This will concern any clients with a Sterling currency transfer over the coming weeks and months, as it is further proof that the UK economy remains extremely fragile in the eyes of investors.
The markets are continuing to prepare themselves as we enter uncharted territory, as no country has left the EU before. As such we have no benchmark to compare with and investors will be questioning how our economy will fair in the months and years to come, once the UK goes it alone.
For this reason I have been advocating that all my clients with a current Sterling exchange requirement, look for short-term spikes rather than hold out for sustainable gains in such uncertain and volatile times.
If you have an upcoming Sterling currency transfer to make, then we can help you navigate this turbulent market by keeping clients up to speed with all the latest developments regarding Brexit and beyond.
If you would like us to monitor the market for you ahead of a currency exchange, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on 0044 1494 787 478 and ask one of the team for Matt.
Alternatively, I can be emailed directly on firstname.lastname@example.org.