Looking for the best GBP/USD exchange rate? Click here.
Sterling dropped across the board yesterday after parliament agreed to keep to Theresa May's Brexit timetable and weaker than forecast UK industrial production figures. However, after falling back to $1.2572 the GBP/USD cross is in touching distance of breaking the $1.27 barrier once again, with the pair currently trading at $1.2690.
GBP/USD graph.
Despite losing ground yesterday, the pound is still around 4.5 per cent up against the dollar since the beginning of November. With the Supreme Court ruling set for the start of 2017 and the UK government still to trigger Article 50, I am sure the pound will come back under pressure before to long, and could easily see sterling give up the gains it has made over the past six weeks.
Looking at the gains in monetary terms, converting £300,000 today will see you receive around $16,000 more compared to the same trade on the 1st November, and in my opinion represents an excellent opportunity for those of you looking at purchasing dollars in the next few weeks.
How can I take advantage of the recent gains?
You can secure a rate of exchange today for a transaction that will take place up to two years into the future by using a forward contract.
A forward contract is a great way of protecting yourself against adverse market movements and is extremely useful for managing your budget. It allows you to secure the exact value of the currency to be paid, removing the uncertainty of the currency markets.
You can secure the forward contract exchange rate with a margin payment of 10% of the total value to your transaction, and then pay the remaining 90% at anytime before the contract expires.
For more information on forward contracts click here.
Do you need to buy or sell dollars?
If you have a requirement to buy or sell dollars in the weeks or months and want to make sure 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 wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.
For more information about how I can help or to find out what rate of exchange I can offer complete the contact form by click on the link below.
