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.
For anyone planning to move abroad, buy a property abroad or do business abroad the result could have profound implications.
Ironically, the very reason that many politicians didn’t want to have an election in the cold, dark, potential snow and flu epidemic of mid-December is the motivation for many of us 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 first surprise, perhaps, was that that the pound didn’t move very far. 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.
For those of us whose priority is simply to live our own life, but require a certain budget in foreign currency to do that, there are three main options.
If you have a major transaction imminent, like in the next day or two, you could make the trade now with a Spot Contract. Change your money, get it in the bank and be ready to make the trade right away. Call us to do that on 020 7898 0541.
The second option, if you know that you will be buying in the year ahead and wish to remove currency volatility from the equation, but without changing all of your money yet, we recommend a Forward Contract.This locks in your rate for the year ahead. Imagine spending all of 2020 not having to worry about the pound!
Lastly, if you would like to earn a little extra something for Christmas, can we mention our client referral incentives? Smart now has all top spots in three out pf our four categories on Trustpilot. So if you recommend us to a friend or colleague who may need currency services, you can do so with confidence, while earning £25 if and when they trade. Just click here to recommend a friend.