Even Liberal Democrat leader Jo Swinson admitted at the weekend that a Conservative Party majority was the most likely result in two and a half week’s time. Rare candour in a politician at election time, although there is still time for things to change.
So while an expected Tory victory pushed the pound up to a six-month high the week before, why would increasing evidence allow it to slide half a cent last week?
It just goes to show that you cannot predict anything with currencies, and anyone expecting the pound to rocket upwards on 13 December – whatever the result – is likely to be sorely disappointed.
Perhaps the markets are starting to worry that another no-deal cliff-edge awaits us on 1 January 2021 at the end of the transition period – another mast to which Boris Johnson is nailing his colours.
That seems to misunderstand (a) the Prime Minister’s track record and (b) the many matters that will be sorted out long before then and don’t rely on a trade deal. Such as rules on citizens’ rights and freedom of movement, the financial settlement with the EU and the Northern Irish border.
We expect to be very busy in the weeks before the election and the year afterwards, as people get on with their plans – some of them stalled for nearly four years.
Do call your trader to talk about your currency needs. We are, by far, the “most trusted” currency company on Trustpilot, coming top on all four currency exchange and money transfer ratings. Our traders are – very rarely for this industry – paid on service rather than commission, and can explain the whys and wherefores of services such as forward contracts.
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