The British pound started this week with a modest gain against the Euro and the Dollar on the view that a Brexit trade deal could be soon be delivered.
All eyes are on the meeting that the EU leaders will be holding at the end of the week. The Brexit negotiations are in the agenda and whilst a deal might not be reached at the summit, experts believe the discussions might settled the main points of the future trade agreement.
The Uk’s transition period ends in December however the EU’s Chief Negotiator Michael Barnier has pointed at the 31st October as an unofficial deadline for the deal even if negotiations could carry on for another two months.
What is the impact for the Pound?
The dynamic for the pound has been the same for quite a while now. Any sign of agreement brings strength to the currency whereas any crumble on the potential lead to a deal tend to bring the pound down.
Most experts seem to be an agreement that if the UK and the EU manage to agree on a good deal the sterling will immediately rise on value, but for how long? The adjustment to a post EU scenario could bring some struggles for the UK economy on a time where COVID is already slowing growth and creating and unsecure and uncertain terrain.
It is time to be cautious and try to protect your transaction, but what can you do to make sure the volatility of the exchange rate and the general uncertainty of the market don’t jeopardise your budget?
If you haven’t done so yet, you should get in touch with a foreign exchange specialist like moneycorp. Opening an account with them is really easy and free of cost or obligation. Once registered you would have access to a variety of tools to help you plan the best way to exchange your funds for your purchase. Some of the benefits include:
Currency updates– with moneycorp you can sign up to receive daily updates on the rates and even rate alerts to make sure you don’t miss any opportunity.
Watch order– They will monitor the markets for you and notify you of any relevant fluctuations to your transaction.
Market order- An automatic purchase of currency if a specified rate is hit in the market – so you never miss a beat.
Forward contract- This allows you to fix a rate of exchange in advance of a payment –up to 2 years. This tool is very popular among property buyers as allows them to fix the whole price of the property ahead of completion giving them the peace of mind and the certainty of how much they are going to pay for the property. But it is also a great way to take advantage of a positive rate movement.
But you might be overwhelmed about the situation and need to have some guidance and what is the best solution for you. As part of our free service our expert dealers will be happy to speak to you and discuss which solution works better for you taking into account your budget, your personal circumstances and the market.
Moneycorp also has an online platform which allows you to book and manage any payment 24/7.
Opening an account for them is really easy and free of cost or obligation and with FrenchEntree there is no transfer fees on your payments.
Furthermore, we have worked with the same person at moneycorp for more than a decade! You might be familiar with her as she often writes for our FrenchEntree magazine. She has 13 years experience in foreign exchange plus she is a qualified European lawyer with experience in European transactions. Mar will be happy to answer any questions or enquiries to support you through this difficult times.
Open a free account today by clicking here.
Contact moneycorp at 020 3773 6355 or send your enquires here.