As you can see from the graph below, the Pound has surged higher after this evenings Parliamentary votes against leaving the EU without a deal: Pound/Euro hits €1.18:
Sterling has seen its biggest one day rise of the year so far. GBP/EUR hit €1.18 while GBP/USD reached $1.34, the highest we’ve seen the Pound for some time.
Why has the Pound gone up?
We had expected a vote to reject No Deal on the 29th March, however an amendment by Labour’s Yvette Cooper rejecting a no-deal Brexit “under any circumstances” was won, by a very small margin of just 4 votes, ahead of the governments motion that also won by 374 to 164 . This shows that there is a majority to rule out leaving without a deal.
This means a delay is now almost inevitable and will be voted on tomorrow evening. This opens the door to many options. Some think that a softer Brexit could be on the cards. Others, that a second referendum may happen. Most likely, May’s deal could now be passed if there is a small delay in order to get it agreed. Whichever way you look at it, No Deal is now unlikely, and the Pound has risen as a result. There remains much uncertainty, and given the Pound has risen so much, the rally could soon run out of steam.
Do you need to buy Euros, Dollars, or any currency with Pounds?
If you are worried about exchange rates, then get in touch with us today to discuss your options. You can freeze the current rate for up to 12 months by using a ‘Forward Contract’. Or, if you think exchange rates will rise further, then you could consider a ‘Stop Loss’. This is where you instruct us to buy your currency if the rate drops below a pre-agreed level e.g. €1.15. In this way you can take advantage of further gains in the rate, while having protection against a sharp drop should things change. You can couple this with a ‘Limit Order’ to purchase currency if rates reach a certain level e.g. €1.20.
We also offer free rate alerts by text, and a 24 hour online trading system so you can see the rates we offer and purchase online when necessary.
(Please note we do not offer cash or holiday money; our service is for bank to bank currency transfers for requirements such as buying or selling property abroad, or international transfers for business. Our rates are up to 5% better than banks or other brokers may offer, and we are fully FCA Authorised).