Published the other morning, Eurozone Growth showed the most impressive level in over five years according to the latest Market Composite Purchasing Manager’s Index. This is a reading that came in at 56.7 over the previous month at 56 and anything that is above 50 shows growth.
Article 50 is coming soon and the timing of the data release is really highlighting all of the risk the UK is facing after officially announcing the withdrawal from the European Union.
We are certainly opening ourselves up to about two years of negotiations with the 27 of the member states, which means that the Pound could be coming into one of the most uncertain times in history.
Taking into consideration what took place with the Brexit vote last year, the Pound ended up seeing a major drop over the Euro and the risk remains the fact that this is unknown territory from here on out.
The foreign exchange industry going back to 2003 shoes that markets can move a great deal whenever there is a notable amount of uncertainty. There could be some major upcoming movements for the Sterling exchange rates after the formal announcements are made regarding any changes.
Prime Minister Theresa May will more than likely try to go with a positive tone in this matter, but the question remains how the markets will actually react. It is from personal experience that it can be said that there will be problems ahead for Sterling. If you are in need of a transfer over the short term, you may want to organize it very soon.
If you do not have the full amount of funding at the moment and you are concerned about what could happen with the Pound, it might be worth purchasing a forward contract that will allow you to fix the exchange rate when it comes to a future date for a minimal deposit.
This will be useful if you are looking to remortgage or make a transfer with larger currency in a property purchase.