Good morning all,
Following a massive Conservative majority not seen since the 1980’s, the pound has shot up across the board.
It found a 3 and a half year high on the Euro up 1.8% to 1.2080, and 2.3% jump above 1.35 on the USD, whilst the EURUSD found a 4 month high of 1.1198.
So what now?
Boris will head into the new year with the power to “Get Brexit Done”, and take the UK out of the European Union by the 31st January.
The pounds correlation to a Conservative-led Government is very clear, with the worst-case outcome risk stamped out now and a path of least resistance laid out ahead.
The year ahead for the pound will remain temperamental, as access to the EU single market will expire 31st December, and a trade relationship agreement must be agreed by then to avoid another cliff-edge scenario.
Today will likely see fluctuations as initial benched currency requirements will begin to flood in. With December being a naturally volatile month, with thin liquidity and festive holidays, we have been speaking to clients since 06:00 with coverage till 20:00 to support your crucial year-end requirements, so don’t hesitate to contact us.
The longer-term trend of the pound will begin to form, as we head into the new year with clarity at least on who will lead the country out of the EU.
Have a great weekend.
Author: Ross Hammond, Senior Corporate Account Manager
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available online.