Sterling sellers have been presented with some favourable exchange rates recently, as the polls continue to place the ‘Remain’ campaigns in the lead.
News of the ‘Remain’ lead has resulted in Sterling strength as investors feel more comfortable holding money in Pounds whilst there’s a low chance of major changes politically in future. It’s political uncertainty that weighs on currency rates, and this pattern is what Sterling sellers will need to pay close attention to as I think it’s highly likely that should the polls change, so will Sterling’s fortune.
The Pound is currently trading at a 4 month high against the Euro, and personally I’m expecting GBP to fall slightly in the lead up to the Referendum next month on the 23rd as I’m expecting headwinds between now and then. Should any major figures offer their support to the leave camp, I think Sterling could see weakness similar to when Boris Johnson informed us that he’s pro-brexit.
The Euro is facing challenges of it’s own as the ECB’s aggressive financial stimulus packages fail to re-ignite the Eurozone economy which is why I’m expecting the Pound to hold on to some of its recent gains, but not all of them. I think that as we approach the Referendum GBPEUR will be around the 1.28 mark which means that from current levels, I expect GBP to fall by around 3 cents.
If you have an upcoming GBPEUR currency exchange to make you would like to discuss, feel free to contact me (Joseph) 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.