EDITOR’S NOTE: Luke Trevail, a currency exchange specialist at forex brokers TorFX, looks at the factors driving the pound’s exchange rate in the week gone by.
The Triggering of Article 50 has given the pound a surprising boost. The relief rally after the Prime Minister gave the formal notification of UK’s intention to leave the European Union has aided sterling in recovering from the lows of €1.13 earlier this month.
We end the week at €1.17, close to the best this calendar year.
The question of what the negotiations will bring now come into focus. The answer if difficult to pinpoint, and will no doubt create peaks and troughs in the market as both sides of the Brexit camp jostle for position. The tussle in Brussels will continue for some time of course and the pound will be a victim or a victor to the goings on.
Those of you that are waiting for better rates to be available are now able to take advantage of the market, I wouldn’t wait for long as the rollercoaster will continue to twist and turn with the Brexit drama.
The pound will likely go up and down with the ebb and flow of the negotiations, which I will analyse in the coming weeks. In the meantime, if you need anything further from your foreign exchange provider, pick up the phone and give us a call.
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.