GBP/USD exchange have tumbled to their lowest levels against the US dollar since January. We have now seen the pound fall just shy of 5% since the end of March and 3.9% in the last three weeks.
This movement can have a significant impact on the cost of a large money transfer overseas. A £250k exchange to US dollars would have bought you $12,500 more at the beginning of May when compared to the current levels.
What is causing the Pound to fall?
As my colleague Alastair alluded to in his post yesterday Brexit issues and cross party talks failing, it looks decreasingly likely that Prime Minister Theresa May will struggle to get her latest Brexit bill through the commons on the 3rd June. It is therefore likely she will stand down and a leadership contest will begin. With a high chance her replacement will be a staunch ‘Brexiteer’ a harder Brexit without a deal becomes increasingly more likely. To compound this the US dollar has also found support through its ‘safe haven’ tag – with on-going trade war tensions between the US and China, along with Brexit, it is likely the dollar will continue to benefit.
Need to buy or sell USD at the best exchange rates?
Even if you don’t need to make your transfer right now, we offer the option to freeze the current rate for a future date by lodging a 10% deposit. If you would like to have a chat about how we can help you with your currency requirements, contact us today.