January’s sharp monthly rebound in UK retail sales was not enough to keep the pound from coming under fresh pressure yesterday.
In a somewhat surprise move, Prime Minister Theresa May has this morning (Tuesday 18 April) confirmed she wants to hold a snap General Election on 8th of June.
Although Downing Street had initially dismissed any talk of an early election less than a month ago, Mrs May announced she had ‘only recently and reluctantly’ come to this decision as a result of a divided Parliament in Westminster.
In a speech designed to look towards upcoming Brexit negotiations in a positive light, Theresa May said that 'the country is coming together, but Westminster is not… division in Westminster will risk our ability to make a success of Brexit'.
On the back of this announcement, Sterling reached a 7-week high against the euro and a 10-week high against the US dollar.
Such positivity against both major currencies has been a rare occurrence for Sterling since the UK’s referendum decision, offering some much-needed relief and positivity for those looking to buy either currencies. However, the UK’s exporters will begin to feel the strain if this Sterling recovery is sustained, as goods become more expensive for overseas buyers and repatriated profits decline.
Political developments have had a significant impact on the pound throughout the start of 2017, forcing SMEs to pay more attention to their foreign exchange practices in order to stay profitable.
Our team will be monitoring the situation carefully to help you react to turbulence in currency markets, stabilise your cash flow and keep costs within budget.
Join us on Tuesday 25th April where we will be hosting a Free Webinar for internationally trading SMEs, and sharing some simple currency hedging strategies that will help you to take positive steps to protect your business and make the most of your foreign exchange transactions.
‘Article 50 and Brexit: How Certain is Your profit?’
- Protect profits
- Reliably forecast costs
- Stabilise cash flow
Time: 3pm BST
Host: Phil McHugh, Market Strategist at Currencies Direct.
Currencies Direct is one of Europe's leading non-bank providers of currency exchange and international payment services. Since we were formed in 1996, we've maintained our focus on providing innovative foreign exchange and international currency transfer services to corporations of all sizes, online sellers and private individuals. We have also expanded our services to provide dynamic and pioneering "business to business" solutions to help companies, tier 2/3 banks and other non-bank financial institutions to process their international payments. Our headquarters are in the City of London (United Kingdom) and we have operations in continental Europe, Africa, Asia, and the United States. Currencies Direct is jointly owned by private equity firms Palamon Capital Partners and Corsair Capital.