Over the past month the pound has slowly collapsed in on itself, like a chocolate egg left in a car on an unseasonably warm Easter weekend. This is not really what the markets were expecting, as you can see in our Business department’s quarterly forecast (which is free to download here).
With Brexit, every step one way seems to have a ramification that isn’t anticipated.
The latest worry is that negotiations for a softer Brexit between the Labour Party and the Government so anger Conservative Party activists that they find a way to replace Theresa May with a hardline Brexiteer. Thus, No Deal is back on the table just when we thought it was banished. Not that this should worry property buyers, who will be unaffected by No Deal. (Click here to see why no deal is no big deal).
Another concern is that a General Election in the autumn might become the only way to break the impasse. The currency markets do not react at all well to political uncertainty.
Thus, we are back in a situation where the pound can go anywhere over the next six months. Still, at least you can enjoy the fact that the most experienced currency traders in the world have no more idea than you.
In the meantime, the UK’s economic performance has remained reasonably buoyant. We would urge all our readers to continue with their plans, especially if that means moving abroad using the new “window” that the Brextension offers to retain all your EU rights.
But do call your trader today on 020 7898 0541 to discuss locking in your exchange rate.
