Pound Stabilises after Heavy Losses
04 February 2020

Today (Tuesday, 4 February) Sterling stabilised after being sold off sharply on the first day of trading (Monday, 3 February). The immediate future is looking towards a further weakening of Sterling with financial pundits alluding to a combination of political issues and reducing exposure to risk as reasons to be less cheerful.

The fall after the rally at the end of last week could also have been affected by end of January amends to portfolios but the Bank of England holding rates at their current level was a prominent factor. Says Privalgo's Ralf Martyrossian “The sharp decline seen over the past few days was largely due to the significant rise last week following the Bank of England’s decision to leave rates on hold.”

And Brexit is not far from the debate on Sterling's highest one-day drop for around six weeks. The coming negotiations between the EU and UK will have a big influence on Sterling over the next few months. Yesterday's opening gambits from Boris Johnson and Michel Barnier were accompanied by a fall of Sterling of 1.37 percent to 1.1740 and the Pound-to-Dollar rate fell 1.45% to trade at 1.2990. Today Sterling is again just north of $1.30 and up to €1.1770 but it is still showing poor recent form against other currencies and the worry is that problems in Brexit negotiations over what looks like a very short timespan to come to a deal will leave Sterling vulnerable if the UK ends up with a WTO deal.

So this year, with potentially turbulent times ahead for Sterling, forward planning and futures contracts are looking the soundest ways to mitigate risk.

Pound Stabilises after Heavy Losses
04 February 2020

Today (Tuesday, 4 February) Sterling stabilised after being sold off sharply on the first day of trading (Monday, 3 February). The immediate future is looking towards a further weakening of Sterling with financial pundits alluding to a combination of political issues and reducing exposure to risk as reasons to be less cheerful.

The fall after the rally at the end of last week could also have been affected by end of January amends to portfolios but the Bank of England holding rates at their current level was a prominent factor. Says Privalgo's Ralf Martyrossian “The sharp decline seen over the past few days was largely due to the significant rise last week following the Bank of England’s decision to leave rates on hold.”

And Brexit is not far from the debate on Sterling's highest one-day drop for around six weeks. The coming negotiations between the EU and UK will have a big influence on Sterling over the next few months. Yesterday's opening gambits from Boris Johnson and Michel Barnier were accompanied by a fall of Sterling of 1.37 percent to 1.1740 and the Pound-to-Dollar rate fell 1.45% to trade at 1.2990. Today Sterling is again just north of $1.30 and up to €1.1770 but it is still showing poor recent form against other currencies and the worry is that problems in Brexit negotiations over what looks like a very short timespan to come to a deal will leave Sterling vulnerable if the UK ends up with a WTO deal.

So this year, with potentially turbulent times ahead for Sterling, forward planning and futures contracts are looking the soundest ways to mitigate risk.

For the Best Exchange Rate

Thanks! We'll be in touch
Ready to open an account, start here

For immediate assistance please call

+44 (0)20 3880 0575

First Name
Last Name
Email Address
Phone