EDITOR’S NOTE: Fears of a Brexit result in the UK’s June referendum on EU membership have the Pound on the slide. Foreign currency exchange specialist Luke Trevail explains.
The EU referendum seems to have dominated the market over the last few weeks and this obsession will only continue the closer we get to 23rd June. Simply put the pound is weak and looks likely to continue as nerves about the UK economy should we see a ‘Brexit’ coupled with lower than expected growth forecasts for the coming year or two plunges the pound lower.
Everyone will have an opinion on whether the UK should stay as part of the European Union, some predictions are understandably listened to more than others. HSBC have weighed in with a warning suggesting that the market may go to parity in the event of us leaving the block.
The weakness in Sterling is being lauded by the manufacturing industry however, as it will hopefully boost exports and drag this vital contributor to the overall economic output back from the brink, once again.
If you need to buy the euro this side of the Summer then you are likely to be disappointed by the rate, but do understand that this could get a lot worse if the vote goes the way of the early opinion polls.
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.
