Brexit is a reality
By David Johnson, Senior FX Analyst, Halo Financial (Sponsored Post)
Britain became the first member of the European Union to say ‘we want out‘. The decision to exit the EU has immediate and then more uncertain repercussions. So can we guess what will happen next?
The immediate change is the fall in the value of the Pound. That is to be expected; uncertainty is never a welcome development in financial markets and change to a 40 year old arrangement is about as uncertain as it gets. However, that initial knee-jerk reaction appears to have run its course and has been replaced by a sort of uncomfortable nervousness across the markets.
What hasn’t transpired yet is the shape and nature of the deal that will be made between the independent UK and the EU. A lot of water will have to flow under that bridge before we reach a conclusion and the efforts to negotiate will undoubtedly cause further volatility. And the starting gun (the invoking of Article 50 of the Lisbon Treaty) is yet to be fired, so we are in limbo; hence the levelling off in the value of the Sterling – Euro exchange rate.
With so many unanswered questions; not least the one about when Article 50 will be invoked, there is plenty of room for further volatility and that will occur with each comment from a central banker, each hint from a trade body; they are saying a timeline of two years but it could definitely take longer than that.
At the time of writing, we cannot begin to know how it will pan out. Will this become a negotiating chip or will the importance of cross border ownership be enough to see early agreement on the matter? As with so much of the Brexit debate, no one knows yet. As for the currency; well Sterling has survived the initial shock of the ‘Leave’ vote and has recovered somewhat. Technically, Sterling bounced from long term support levels and, whilst the media were keen to highlight the 30 year lows in the value of the Pound; that was really only against the US Dollar. Against most other currencies, the Pound levelled off at 2 and 3 year lows.
We also have to wonder what will happen to the Euro. Seeing the 2nd largest economy and 2nd largest contributor to the EU leave will have a profound effect on the EU economy and that is likely to weaken the Euro in time. We haven’t seen the start of that yet.
So how can Halo Financial help you in uncertain times such as these?
Halo Financial is a leading UK foreign exchange brokerage, offering a comprehensive range of services to individuals and businesses since its inception in 2005. The business prides itself on offering a flexible and personalised approach for each of its clients, simplifying the seemingly complex foreign exchange market to maximise savings in currency transactions and make money go further.
Whether you are a buyer or seller, planning is key to success when converting your currency in a volatile market such as we are seeing now. With Halo, you will be assigned your own personal FX Consultant who will help you target the best exchange rate, select the right payment option and proactively contact you when the exchange rate is in your favour.
There are no commission fees and no transfer fees on transactions above £5,000. You can even sign up to a selection of free news updates so you’re completely informed on the latest market news, such as Brexit, the latest on the main currency pairings, financial and economic data and much more.
About Halo Financial
Halo delivers:
•Excellent exchange rates save up to 4% compared to other currency providers
•Protection against adverse currency fluctuations
•A dedicated currency expert who will personally manage your currency needs
•Excellent customer service with over 675 reviews on feefo.com and 99% of them positive
Halo will:
•Save you money and advise you on the best time to move your money
•Simplify the process of buying foreign currency
•Swiftly and efficiently transfer your international payments
For more information, call the private team on +44 (0)20 7350 5474 or complete the form on this page
