FOREX NEWS: Pound gets support from the ‘Obama effect’

forex-29-apr-2016

EDITOR’S NOTE: The pound has rallied against the Euro after a disastrous month, in part thanks to comments by US President Obama. Foreign currency exchange specialist Luke Trevail explains.

TorFX

The Obama Effect took hold this week after the President’s comments in support of the Stay Campaign relieved the pound of a disastrous month.

President Obama stated that Britain would be at the ‘back of the queue’ for trade deals with the US if we vote to leave the European Union at the referendum on 23rd June. It’s thought that this support for the country to stay in the union has given a great number of undecided voters some clarity in their decision making. Some predictions now state the there is just a 24% chance of leaving the EU.

All of this has helped Sterling in its efforts to recover from the two year low that we saw earlier in April.

The direction that we take now of course remains uncertain, but the brief dalliance with €1.29 may only be short lived as UK fundamental data this week continues to undermine the outlook longer term.

With the chance of a swing in sentiment from the opinion polls which will continue to be published over the coming weeks, those of you wanting to take advantage of the spike in the pound are well placed to act on the transfer sooner rather than later. Just in case Boris opens his mouth again!

This article is written by a foreign-currency broker working for TorFX, a forex broker established in 2004 to provide foreign exchange and international payments to both individuals and companies. TorFX is authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. Their FCA number is 517320. To verify their authorisation, you can visit the Financial Services Register and search the register using their FCA number. SPI is not responsible for the opinions of guest contributors.

TorFX

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