Brexit back in the headlines

6 October, 2016

Grace Rae

As talks of Brexit come back to the headlines this week investor confidence has been spooked by Teresa May’s bullish stance on a ‘hard’ Brexit leaving market analysts hinting at parity or at least close to parity in the coming months. Yesterday at lunch time Teresa May delivered another speech this time less of a market mover as she focused her speech on her visions for Britain post Brexit.

This week we saw the Pound fall to a 5 year low against the Euro and his the lowest levels for Dollar since 1985. Now breaking through key support levels many analysts are toying with the prospect thatrates could be as low as 1.05 on the euro and 1.15 on the Dollar in the coming months. If you have an upcoming requirement, it may be worth considering hedging your bets and to look to secure your currency sooner rather than later.

In terms of data releases yesterday, Markit Services PMI came in positive for both the EuroZone and the UK and as such we saw no major market movements as a result. The afternoon looked to US ISM non-manufacturing index for September which came in above market expectations posting 57.1, 4.1% better than predictions. Overall a fairly stagnant day in the market and although this week’s movements haven’t brought great news for those looking to buy currency, those who have a selling requirement have certainly lucked in and making the most of these recent lows.

As always, if you have an upcoming requirement and are concerned about the what the markets current direction will mean for your transfer then do get in touch and speak with a member of the Currency Index team to see how we can help you get the most out of your transfer.