If you follow poundsterlingforecast on a regular basis you would have seen my article on Sunday morning and my prediction was that the pound would to start to slide in the run up to Theresa May triggering Article50. If you are not a regular reader ‘triggering Article50’ means starting the process of leaving the European union.
GBPEUR and GBPUSD have both dropped 2 cents within the last 7 days which means a €200,000 purchase is now £2,873 more expensive and a $200,000 £2,645 more expensive.
This week the House of lords have made an amendment to Theresa May’s Brexit Bill. They want to guarantee the rights for EU citizens once the UK completely exits the EU, in the years to come. The amendment should only be a stumbling block and Theresa May should still be able to stick to her deadline of the end of the March. Therefore I still believe further fall are on the horizon for sterling exchange rates.
An important data release that could impact GBPEUR and GBPUSD exchange rates today is Janet Yellen’s speech this afternoon. Speculation is building that the FED will raise interest rates in April and therefore if Janet Yellen hints to when the FED will act, you could see a further fall for GBPUSD exchange rates however this could cause a potential positive spike for euro buyers.
Many of my clients until we speak do not realise they have many options available to them. For example if you are purchasing a property abroad and you are waiting for your property to sell in the UK, you can use a forward contract which allows you to lock into exchange rates now and you pay later.
Feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF etc) the reason for your conversion (company invoice, buying a property) and I will email you with my forecast for the currency pair and the process of using our company email@example.com.
For the readers reference the company I work for on a daily basis save clients money on currency transfers. If you are planning a transfer and are using your bank or another brokerage, I would recommend getting in touch for a forecast and at the same time compare of exchange rates. This is free of charge and will take you a few minutes.