The Pound has continued to take a hammering in the currency markets today, falling to below €1.20 against the Euro, and to $1.31 against the US Dollar:
The decline started in trading in the Asian markets yesterday, and continued when London opened at 8am this morning. It's all to do with the uncertainty, both political and economic. George Osborne has said that the UK is ready to face the future from a position of strength, in an effort to calm the markets. However the fact is that the Prime Minister has left his successor to pick up the pieces, and we won't know who that is until October. The opposition is in complete turmoil, with many shadow ministers being fired or resigning. Their replacements that were announced earlier have now also resigned, which leaves the UK in a bit of a political void.
Markets hate uncertainty, and that's what we're likely to have quite a lot of in the coming months. That's why the Pound has fallen. It seems to have stabilised around the €1.20 level against the Euro.
We were accepting trades from clients from 05:30am until late on Friday, and continue to offer rates of exchange that are usually much better than banks or other brokers would offer. Those that need to buy or sell currency need to get in touch now to find out their options, and help limit any further losses. HSBC have warned GBP/EUR could drop as low as €1.08, so those needing to buy Euros may wish to consider biting the bullet, and getting something done now to protect against a continuing decline in the value of the Pound.
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