The Pound’s value was relatively unchanged in the wake of the UK government announcing the date for the start of the Brexit.
Towards the end of last week it emerged that the 29th of March will be the day Brexit is officially triggered, as UK Prime Minister Theresa May will invoke Article 50 in what Brexit secretary, David Davis has called ‘the most important negotiation for this country in a generation’.
I think the reason the Pounds value remained mostly unchanged is because the financial markets were expecting the announcement, after May made us aware of the governments plans and timescales towards the end of last year.
Personally, I think the Brexit is mostly priced into the Pounds value and I’m actually quite optimistic regarding the Pounds value moving forward. I think the major drops in the wake of the vote have seen the Pound consolidate at its new levels and it appears to see support at the 1.60 level against the Aussie Dollar.
The rising inflation in the UK is also likely to result in an interest rate hike which would likely boost the Pounds value, and there are concerns in Australia that the housing market is overheating, particularly in cities such as Melbourne and Sydney which could impact AUD’s value.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.