Sterling saw a very gradual decline throughout last week, with Pound to Euro and Pound to Dollar exchange rates creeping daily towards levels not seen since January.
The reason? Multi-fold, frankly, Euro and Dollar buyers are lucky that rates have not degraded further.
All of these features were also a surprise, which reflects just how important it is to be in a flexible position and be truly up to date with current information. Whilst I hope our readers, regular and new, find this website useful to get your bearing on daily events and your various options for a currency purchase, there is no substitute for direct contact with a currency broker aware of your situation, who can deliver timely updates to you which affect your situation in a market which changes every few seconds.
Firstly, the House of Lords seem to have been defeated on their first attempt to alter the Brexit Bill. They had not even yet tried to secure a gaurantee for a Parliamentary vote on any eventual deal reached with the EU, which was the main feature currency markets were hoping to be delivered.
This caused a gradual sell-off of Pounds since Wednesday, with investors becoming increasingly nervous regarding the scheduled triggering of Article 50 this month given the current state of the Bill.
Furthermore, Euro buyers faced more severe drops on the Thursday, following the release of a new Poll suggesting that the gains made by the anti-EU Marine Le Pen in the upcoming French elections in April had beeen eaten into.
A staunch opponent of the EU, and even the Euro itself, after a recent scandal for her main competitor, she was becoming the odds-on favourite. Yet a new challenger from the centre has emerged, and as stated above, is currently edging her out.
My personal view is that polls have consistently under-estimated anti-establishment candidate performance in the run up to the vote. Brexit, Donald Trump. Will this be the third upset in the space of a year?
But markets have to work with the information they have, and this was enough to see greater confidence in the Euro to avoid another Referendum on EU membership.
Next week, there is little economic news expected to be released until Thursday, so this current narrative may see a gradual decline in the Pound’s status against other currencies.
As such, depending on your timeframe for a transfer, if you are purchasing a foreign currency with the Pound, whether Euros, US Dollars or Australian Dollars, it’s well worth your time getting in contact with me on firstname.lastname@example.org 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.