Well, this is exciting! In the three and a half years since the Referendum you might have got used to not much happening. Suddenly we have an election coming on 12th December, from which we could go in all sorts of directions.
Ironically, the very reason that many politicians didn’t want to have an election in the cold, dark, wet and potential snow of mid-December, is the reason that many of us want to move abroad. So if you’re looking forward to a brighter, sunnier and warmer future abroad, what does the election mean for your currency? The result could have profound implications.
The first surprise, perhaps, was that that the pound didn’t move very far as the news came in and vote was passed. It could be that political instability is “priced in” to the pound’s value right now.
Or it could be that the currency markets are unsure which way to jump. Does an election make Brexit less likely or more likely? Given the current polls, is a more left-wing Labour government than we’re used to a realistic possibility? What will the Brexit Party do? What chance we could end up with a coalition government including die-hard anti-Brexit parties like the Lib-Dems or SNP? Or is it more likely that Boris Johnson will secure a commanding majority?
Such wildly diverging options make it a brave currency trader to make the leap right now.
Frankly, why bother? If you have a major transaction in the next year, you can lock in your rate now with a Forward Contract and go somewhere nice until Christmas!
Call your trader to do that on 020 7898 0541.
