Focus on the budget for exchange rates

Yesterday was a flat day in the markets with no major change during the day’s trading closing more or less where it started the day, holding the gains made yesterday against the Euro on the back of political uncertainty in Germany. Will we see Merkel run again should they have another election? Seen as one of the most powerful figures in Europe, her struggle to form a government could be bad news for the Euro. However, should we see her form a coalition or win a majority in the possible elections, these gains could be lost sharply with the UK still seemingly struggling to make any progress of note in Brexit talks.

Brexit update

Negotiators have agreed to pay a higher sum to settle the ‘Divorce Bill’ that has remained a unresolved issue. The new sum is believed to be around the £40bn mark, almost double the current UK offer. there will be hope in the UK camp that this step will encourage the EU to progress on to trade talks, which they have so far been reluctant to do. not all the members of the conservative party are happy with this however, with some believing we will be better off walking out with no deal at all. The uncertainty and split in Theresa May’s party is keeping Sterling under heavy pressure in the currency markets.

GBPZAR

There is good news for those of you looking to send money to South Africa, where levels have held the highs we hit over the last week. Rand is known for being very volatile so should you have any requirement coming up, why not take advantage of these current highs.

The budget for exchange rates

Today the focus is very much on The Budget for exchange rates. With the Brexit situation currently dictating where we the next 12 months will be heading. Historically not a major player in the currency markets however with the current Brexit situation and a negative looking budget could heap pressure on The Pound and see it lose the gains made in the last 2 days.