Expect major fluctuations this week for sterling exchange rates

This week UK Prime Minister Theresa May is set to meet her cabinet on Tuesday to discuss the Conservative’s position on Brexit. Last week 11 key cabinet members met at the PM’s countryside retreat and reports late last week suggested the meeting went well. A united Conservative party should help the value of the pound and any person that is looking to purchase a foreign currency.

However, Donald Tusk this weekend has announced that the UK appear to still be trying to ‘cherry pick’ and the bottom line is that the EU won’t allow it. Recently reports are suggesting that the UK have given in to some of the demands the EU have made about the transition period, and I expect the UK to continue to give in to further demands which will pave the way for trade talks early April.

Later in the week the Theresa May will address the public and give further clarity which should give direction to the future of the pound. However exchange rates change before the event and any positive news early in the week from the cabinet meeting I believe will strengthen the pound.

One of the common currency pairs I help clients to trade is sterling v euro. Many of my clients that are buying properties abroad short term are waiting until central levels reach 1.14.-1.15 and I think this is sensible. Where as on the flip side, any of my clients that need to sell euro to buy sterling are trading as soon as possible as they don’t want to risk exchange rates rising back towards pre Brexit levels.

For people that are new to currency exchange as this is a one off transfer, GBPEUR exchange rates were 18 cents higher the day before the UK referendum. To put this into monetary terms on a €200,000 transfer back into sterling today compared to pre Brexit you achieve an additional £24,500.

With the UK economy performing much better than many forecasters predicted, interest rates are going to be hiked in the upcoming months and the UK are clearly trying to negotiate with the EU, I expect the pound is going to strengthen overtime and now is the time to buy sterling!

Of course there are always peaks and troughs, if you are converting the pound with a currency that isn’t the euro and want a forecast feel free to email me the currency pair (GBPUSD etc) on [email protected].  I will respond with my forecast and the process of using our company.

For the reference of the reader, lately I have been receiving many emails from speculators. To make it clear we are a currency brokerage that help clients achieve rates that our clients can’t with their own bank. Therefore if you are buying or selling a property abroad and want to save money, I want to hear from you as I can help you save money. If you are simply betting on the currency market, I can’t help you but I wish you the best of luck.

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