The pound has enjoyed a dramatic morning, strengthening by around 1% against both EUR and USD within 15 minutes of Asian markets opening, then falling and rising since.
It’s very much the shape of things to come over the next few weeks. While authoritative news from the Brexit negotiations might be in short supply, you can gauge how talks are going by movements in the currency.
That will continue to be the case. Analysts expect to see constant swings until we know either way if we get a trade deal or not. The latest, though, is that no deal looks more likely, and that will inevitably impact the pound.
It’s going to be a hectic Christmas period for many people, as they either implement new measures arising from a deal or protect themselves from no deal. At Smart we are open every working day throughout the Christmas and New Year period, and expect to be very busy.
For anyone doing business in the EU, the basic question remains as to if we can even get there in three weeks, or whether the UK’s Covid infection rates will see us excluded as a third country. What an extraordinary state of affairs.
It would be easy to get a little panicky about all this, but you might compare it to those Christmases where everybody gets into a huge stress before the event and by 3 o’clock on Christmas Day while watching the Queen (or not) you’re completely relaxed, wondering what all the fuss was about and looking forward to next year.
We were exceptionally busy last week as many clients opted to lock in the exchange rate with a forward contract.
That does seem the most sensible solution right now, so if you’re determined to buy abroad in 2021, do give your trader a call on 020 8108 5337.
