It seems the exaggerated falls on Friday for the Pound weren’t the beginning of a downward spiral, with Pound to Euro exchange rates recovering by 0.7% already by the time this article is being written.
On Friday Theresa May stated that Brexit could be triggered as early as Tuesday, which pushed the Pound much lower on currency exchange rates given that most were expecting this to go down to the wire on March 31st.
However, it seems that the drop in the Pound was also due to a speculative feature which has become fairly common in the currency market landscape.
Each Friday, financial institutions and investors have to decide which currency to allocate their funds into for the period when they are away from their desks for the weekend – due to the time difference other economies will continue to trade whilst institutions are not their to protect their capital.
With the surprise announcement from Theresa May on Friday – this saw a mass rout with people relieving themselves of Sterling.
This has since been corrected, as markets tend to do, today. The imaginative mountain of cheap Sterling available is brought up in droves, which in turn raises its value through increased demand and balances out the exchange rates. Hence the rally for Pound to Euro exchange rates today back up to similar levels we were seeing last week.
As my Article yesterday discussed, there are still a few forks in the road to navigate, and being up to date on any news emerging, even to the minute, can make a significant different to your potential currency return if you’re in a position to act quickly.
You can contact me directly on firstname.lastname@example.org to discuss a strategy for your particular transfer aimed at maximising your currency return. I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you a significant sum and frankly hassle on an upcoming transfer.