We’ve had one of our busiest weeks of the year as those of our clients with a major transaction in the offing have been either paying the full amount now – using a spot contract – or locking in today’s exchange rate for a transaction in the year ahead with a forward contract.
It does look to be a very good rate – the highest since the spring and one that we would have envied for much of the past three years.
The boost is undoubtedly based on the market’s optimism over the possibility of a deal. However, the fact that so many Brexiteers are willing to agree a deal very similar to the one they were dead set against when Theresa May presented it, does make you wonder if the dream of a “clean break” Brexit is disappearing. Stocks in industries most frightened by no deal also rose sharply this week.
Could the pound’s strength also be coming from the realisation that a confirmatory referendum might be the only way to get it past parliament?
Why not call your trader today on 020 7898 0541 to chat through your plans?
