Sterling exchange rates have slipped back following a slow down in Brexit negotiations in which Theresa May has hinted that the post-Brexit transition period will be extended.
The current length of the transition period – designed to smooth the path from Brexit to the UK and EU’s future permanent relationship – is 21 months. But with the two sides failing to reach a deal yet, UK Prime Minister Theresa May has suggested extending this arrangement “for a few months”. It would appear the EU are prepared to allow thgis extension although it has been suggested there will be financial penalties imposed on the UK as a result.
What now for the pound if Brexit drags on?
With the divorce bill supposedly being agreed by today, a number of key “Brexiteers” have been left wholly unimpressed. With the Brexit can being firmly kicked down the road we are set for a continuation of uncertainty and clarity as to what will happen for the pound. This whole Brexit process is becoming quite tiresome and unfortunately we do not seem to be getting any closer to reaching an agreement that works for both sides. For those buying Euros does it mean you have missed the boat? Potentially, yes. We briefly touched 1.1480 last week, the highest in 4 months and once again the pound is trickling back down with current levels at 1.1373. It is now highly likely the “divorce” process will be delayed and we as a result we could easily see the pound fall back towards the 1.12 level.
Do you need to exchange currency or make a transfer?
As you can see above, there are lots of things happening at the moment that can affect exchange rates. If you need to move money overseas, to purchase property for example, then you should be speaking to an expert currency broker to understand what effect the above could have on the cost of your currency.
Here at currencyforecasts.co.uk we offer a free consultation to any private or business client that have an exposure to the currency markets. We can help you understand what is moving the rate, which direction it could take, and the options you can consider to protect you against the rate moving against you. We can also offer you a free quote so you can see what rate we could offer; typically our rates are up to 3% better than your bank or existing broker might offer and you could save thousands of Pounds.