Sterling Struggling to Find Support Above 1.20 (Matthew Vassallo)
Sterling has found a lot of resistance around 1.20 against the EUR, with the single currency continuing to find support under this threshold.
The Pound has touched this level on more than one occasion over the past couple of weeks but evidently does have enough market support, or investor confidence to breach this consistently under the current market conditions.
1.20 has become something of a glass ceiling for the Pound and whilst GBP has clearly found a foothold over recent weeks, I’m not convinced that we are going to see another aggressive move in the short-term. Whilst the Eurozone is facing multiple problems of its own, both economically and politically, the UK economy’s prosperity is currently being driven by our on-going Brexit from the EU.
This is likely dominate market sentiment for months, possibly even years to come and as such I would be wary about putting too much faith in sustainable Sterling strength. Until we have a clear picture of how we will facilitate our Brexit the uncertainty that this has created will handicap any major advances for the Pound in my opinion.
I do feel as we move into 2017 and assuming we do get some factual information released about how the UK economy will move forward post Brexit, that economic issues manifesting themselves inside the Eurozone will inadvertently push Sterling’s value up. However, I would be prepared to gamble on this and as such I would be taking advantage of the 4-5 cent improvement seen for those clients holding the Pound over the past month.
If you have an upcoming Sterling currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.
If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on email@example.com