GBP/USD graph
After hovering around the $1.22 during Thursday and Friday’s
trading session, the pound has found itself on the back foot today after reports
emerged about a potential rift within the Conservative Party.
According to The Daily Telegraph, Chancellor Phillip Hammond
is on brink of quitting his post after he was excluded from government meetings
for criticising Theresa May’s ‘Hard’ Brexit approach.
Despite the Treasury moving quickly to deny the claim, it
has done little to lift the mood of investors and is likely create further
uncertainty about the UK’s exit from the European Union. Since the referendum result the GBP/USD cross has been in free fall, with the pound losing nearly twenty per cent against the dollar since 23rd June.
The recent decline does not make very good reading from
those of you looking a purchasing dollars, but for those that are selling it
represents an excellent opportunity.
With GBP/USD at its lowest level since 1985, it is now an
excellent time to repatriate funds back to the UK. If we look at the move in
monetary terms, converting $300,000 back into Sterling will now see you receive
almost £46,000 more compared to same transfer in June.
Will the GBP/USD exchange rate improve?
Over time I think it will but I still have a feeling things
could get worse for the pound. Although the market has started to price in a ‘Hard’
Brexit, we also have to remember events in the U.S. will also have an impact on
the value of the cross.
It is looking more and more likely the U.S. Federal Reserve will
raise interest rates again before the end of the year, and if they do we will
probably see the dollar strengthen.
It is impossible to say how far GBP/USD will fall but I
would not be surprised if we see the currency pair dip below $1.20 before the
end of the year.
Do you need to buy or sell dollars?
If you have an upcoming requirement to buy or sell dollars
in the coming weeks and want to ensure you are making the most from your
transfer, contact me today for a free, no-obligation currency consultation.
As a specialist in currency exchange I have a number of
tools at my disposal to help you maximise the return of your transfer or
protect you against adverse market movements.
For more information about how I can help or to find out
what rate I can offer, complete the contact form on the right-hand side of the
page or call me directly on 0044 (0)
1442 892 065.
