What are you waiting for?

15 November, 2019

Matthew Boyle

This week has seen a continuation of the Pounds good fortunes as yesterday it reached a new 6 month high against the Euro, whilst also pushing GBP>USD rates slightly higher. Analysts suggest that this is primarily based on speculation and pricing-in of a large conservative majority in the upcoming election on Dec 12th. However warnings are being provided on two fronts – firstly that UK voters are known to have the ability to switch their votes which has been seen in recent years, and secondly, the market has been overexcited by the Brexit parties announcement earlier this week saying they would not contest seats.

It should be remembered that in 2017 the Tory’s had an impressive 18-point lead at the start of the campaign, which ended with a 2-point advantage come the time of the vote. To add to this, we should perhaps not underestimate the growing popularity of the Labour party, particularly amongst the disenfranchised youth, Remainers, and those who are simply bored of the Tory party antics and Boris Johnson. With the election fast approaching uncertainty will no doubt begin to grow, and as we know this can adversely affect exchange rates…so with rates currently sat at such appealing levels, what are you waiting for? Speak to your Broker today who can help with ways to help reduce the risk of your upcoming transfer, and help you take advantage of exchange rates at this peak level.

Today we have a raft of lower level Ecostat releases throughout the day. We have two releases of note – Eurozone inflation at 10.00 AM, and US retail sale data at 13.30PM. Eurozone inflation is estimated to remain flat, so no effect is likely to be seen from this, however, a result outside the prediction could see rates move. US retail sales are expected to show a contraction so GBP>USD rates might be one to watch this afternoon. For the Pound, though Brexit and the election will remain the focus, so stay in touch with your Account manager if you have any upcoming requirements as we continue to watch the drama unfold.