Rates improve following US mid term elections

Yesterday the results from the US mid-term elections took centre stage over anything else. With split results, the US Democrats win control of the House of Representatives, capturing 219 of the 435 seats while the Republicans retained control in the Senate. These results are important for the US as a split Congress will ultimately slow down the process to get new legislation through to Washington, and the results left the Dollar losing some ground, paving the way for better buying rates for those with Sterling in hand.

The day ahead is relatively quiet in terms of eco data with a speech in the afternoon by the ECB’s Coeure at 14:15 followed swiftly by Mario Draghi at 15:20, and this evening the Fed release their latest monetary policy and interest rate, which is expected to remain at 2.25%.

GBP-EUR rates have been trading in a sideways motion for some time now, with current levels at the top end of the scale, and with a number of Brexit issues still needing to be ironed out its hard say with confidence if the Pound will strengthen much further and break out of its current position. There have been reports that Theresa May has said that a deal is 95% done, however, there have been no confirmed statements regarding an agreement on how to move forward on a no hard border in Northern Ireland. Latest reports are saying that the PM has invited Brexit ministers to a meeting where they will have the opportunity to read the UK’s draft deal and no doubt comments will shortly appear in the headlines once that happened. The outcome of which could cause some more volatility in the rates as Brexit sentiment continues.

With current levels against the Euro being the best we have seen since June and since mid October against the Dollar, those with an imminent requirement coming up may want to get in touch with us to explore the various options we provide you secure your currency requirement. We can lock in at today’s rates for immediate or future settlements and if you are hopeful to achieve a particular rate then call us and let us know. Our Limit Order option might just be what you need to help you get there. Call today to speak to one of our team for more information.