Everyone in the currency market is suddenly becoming a consummate political theorist, with Pound to Euro exchange rates being heavily manipulated by the unfolding debate in the House of Lords, as well as developments in the Eurozone.
The Lords have shown their muscle early in the string of Amendments proposed, choosing to force the commons to vote on whether European Citizens rights will be guaranteed for the upcoming negotiations.
The Lords think so, and the Government, whilst likely to grant it, wanted to keep this as a negotiating tool in their back pocket. It seems the Pound weakened on the back of the seemingly reduced negotiating power for the UK heading into Brexit talks.
Frankly, investors are also nervous that the Lords have used their political capital in this tit-for-tat with the Commons on something that both sides knew would be effectively a foregone conclusion. What markets really want is a guarantee that Parliament will receive a vote on any eventual deal reached. This would calm investors that something sensible will be brought into Law at the end of the two year time period if they keep to the schedule.
So now we wait with baited breath for the rest of the negotiations, but it is obvious that risk is currently in place for Euro buyers.
Anyone holding Sterling was also dealt another blow with a moderate candidate in the French election, Fillon, accused of paying his wife hundreds of thousands of Euros of party money, refusing to bow out of the election, allowing opportunity still for greater challenge to the anti-EU far right candidate Marine Le Pen.
The situation can change drastically, as it has done multiple times just in the past two weeks. Just last week we were above 1.18 on the mid-market level. As such it is imperative that is you have an upcoming currency transfer, you establish contact with a proactive broker to keep you informed of developments and movements in your respective currency pairing. Shifts yesterday were happening on an hourly basis, and with news set to come out from Parliament without much warning, this is not something to be left until the end of your working day.
I am in a well-placed position to do just that. If you are planning to make a currency exchange involving the Pound and the Euro, 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.
You can also call in and ask reception to speak with Joshua on 01494 787 478.