Closing in on Voting day

6 June, 2017

Grace Rae

Yesterday European Markit Services PMI posted 0.1% higher than the previous month’s figures while the UK figure had contracted 2% from previous. Neither result had any real effect on the rates, with the vote taking full ownership of market movements just now. The afternoon shifted to the US which also posted an array of negative results continuing its recent run of weakness.

Depending on the outcome of the general election vote the future for the Pound is still very unclear. Market sentiment is still very much with the Euro just now, and until results are in it is likely that these current levels are set to continue. For our readers who are looking to sell your Euros back to sterling, now is certainly a good time to do so, as rates are now at the best selling levels in around two months.

There is certainly a big question mark surrounding the Pounds future, and for those with ideas that the Pound will make a massive recovery following the vote should be warned. Even once final votes are in, there is still a long road ahead regarding Brexit negotiations, and as our regular readers are now well aware, currency does not bode well with political uncertainty.

If you are worried, remove the risk and get in touch with your broker before the vote to secure your transfer. For those who are more risk adverse and willing to gamble on the rate following the vote on Thursday evening, you may want to consider making the most out of the Stop Loss and Limit Order contracts we provide when securing your currency. Stop loss orders can protect you should the market fall below your budgeted rate of exchange, automatically buying the currency should the market fall to even lower levels than present. The Limit order works oppositely, so should you wish to achieve a slightly better rate but the market isn’t quite there yet, you can place a limit order at your preferred rate. Again if the market moves to a level where either rate is achievable, it will automatically be brought on your behalf. A great tool to consider during what is expected to be a somewhat volatile period.

Either way, get in touch with your CI broker today to discuss your options ahead of the vote.