Sterling remains under pressure this week, with the Pound seemingly taking a step forward before being knocked and retracting.
The question many clients having been asking me recently if whether Sterling can continue any positive run and whilst the markets never move in one direction forever, sustainable Sterling strength remains unlikely under these market conditions.
The current market sentiment for any clients holding Sterling is being driven by talk of the UK’s upcoming Brexit. The triggering of Article 50, which will officially start the process, is having a huge impact on investor confidence and even a positive run of economic data for the UK could not alleviate the markets current concern.
UK Prime Minister Theresa May has stuck stringently by her deadline of this month to trigger the Brexit bill but this has now been thrown into doubt.
The House of Lords has gone against the House of Commons and voted to guarantee EU citizen’s rights, the first major amendment to the bill. With further changes likely over the coming days, we could now see this passed back to the House of Commons to ratify the amendments and a game of political ping pong could entail.
This would lead to further market uncertainty and the Pound could suffer further setbacks as a result. Whilst Sterling had gained a foothold following in recent weeks, it is struggling to make any further inroads against the EUR & USD in particular. Whilst there are still so many unanswered questions regarding how we will facilitate our exit from the EU and what deal will be in place once we do, I would not be gambling on a major spike from the current levels.
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 email@example.com.