With little under six months until Britain formally leaves the EU on the 29th March 2019, there is still a lot of uncertainty around what the deal will be, what it could mean for the UK economy and the kind of relationship Britain will have with the EU in the future.
We have highlighted what we think are the key dates over the next 6 months as Britain looks to agree a Brexit deal in our Countdown to Brexit:
The outcome (or lack of outcome in some scenarios) of these key events could create volatility on the currency markets and impact the value of the Pound. This year, we have seen Sterling trade in a range of 5.3% against the Euro, and 12% against USD.
The ongoing uncertainty around the Brexit negotiations and perceived instability within the UK Government have been key influencers. The major concerns are surrounding the agreement of the final deal with the EU, and whether Parliament will formally pass it. In the US, the Dollar has been strengthening on the back of the increasing of US Interest Rates from circa. 1% to 2-2.25%. The trade war between the US and China is also having an impact on global growth and sentiment, and is driving investors into the perceived ‘Safe Haven’ of Japanese Yen.
Whatever happens, we’re always here to help you make your international transfers.
We can be your eyes and ears in the market, with a range of currency tools to help you monitor market movements. With a HiFX account, you can also create personalised Rate Alerts to let you know when your desired exchange rate becomes available.
Nobody can know for sure what will happen over the next six months, or how the UK will be impacted once a deal has been agreed with the EU. But it seems reasonable to assume that there may be some volatility for the Pound whilst the deal is being negotiated. If you’d like to discuss your situation with us in more detail, please contact us and our team will be happy to help.
The details expressed in this transmission and accompanying documents are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. HiFX Europe Limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information. HiFX Europe Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017, registration 462444, for the provision of payment services. HiFX Europe Limited is also a registered MSB with HM Revenue & Customs. Registration number: 12131222. HiFX is a limited company registered in England and Wales. Registered number: 3517451. Registered office: Maxis 1, Western Road, Bracknell, Berkshire, RG12 1RT.