Once again we find ourselves in limbo as far as exchange rates are concerned until we have further clarity regarding Brexit. We are expecting MP’s to vote for a third time this week on Prime Minister Theresa May’s Brexit deal. But what are the potential implications?
Is the PM getting the support she needs?
Last week MP’s rejected her latest proposal for the second time by 149 votes but backed plans to rule out leaving the EU without a deal. They also voted in favour of an extension to the process, either until the 30th Jun if the deal can be passed by the 20th, or a longer term extension, with some of the key personnel from the EU suggesting the delay could be as long as two years.
It appears Theresa May has started to gain some support with a number of MP’s reluctantly backing her plan. Consensus is they feel her deal is better than a delay or another referendum. She still has someway to go with the number of Tories backing her plan falling short of the 75 she needs.
If her momentum continues this week and she gets her deal through then the pound could and should strengthen towards 1.20 GBP/EUR and 1.35 GBP/USD. Of course the risk is should she fail for the third time and once again the pound will be stuck in limbo and the uncertainty will most likely cause the pound to fall.
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).