Now may be the time to transfer money to Europe to obtain strongest rates against the Euro, as experts have forecast further drops to come for the Pound.
Sterling’s performance against the Euro exchange rate is expected to fall by 5 to 6 per cent due to the increased likelihood of a hard Brexit as opposed to a soft Brexit, warns Credit Suisse.
Today it was announced that analysts, based on the current political spectrum, predict a 60:40 probability of hard Brexit, which will lead to more uncertainty and for the Pound to fall lower before recovering. However, Credit Suisse did note that it’s not all bad news – policymakers may be undeterred by a weaker pound, and as the economy shifts to accommodate the changes brought about by Brexit, a weaker pound may be what’s needed to help facilitate this change.
If you are converting GBP to USD and sending the money to America, it is thought that hard Brexit will see the Pound fall to an all-time low against the dollar, trading at 1.05, while a soft Brexit would see it rise to 1.35 against the Dollar. For those with a large upcoming money transfer it is possible to lock in the current exchange rate for up to a year with a currency forward. Request a forward rate quote here.
Elsewhere in North America, the Canadian dollar has remained trading with the GBP near it’s highest rates. There was slight fluctuation on Thursday in the wake of Wednesday’s October policy meeting, during which the Bank of Canada (BoC) outlined it’s outlook for the remainder of 2016.
The growth outlook was cut, the historically low interest rates stayed the same, and the value of oil dropped following a 15-month high. This caused the CAD to weaken slightly compared with the USD, but it still remains at a favourable rate against Sterling for Canadian Dollar money transfers.
Richard founded Berry FX in 2015 and has worked in financial services for 18 years most recently at Investors Intelligence, previously acting as prime broker for some of the largest foreign exchange providers in the UK and multi asset derivatives broker at MF Global (Man Financial).
Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2000.