The Pound was having a pretty good week last week until Brexit came back to haunt us - The EU stated that the Cheques Plan created by Theresa May will not work, and there will have to be amendments for a deal to be made.
Theresa May responded in a speech on Friday afternoon by saying that the UK will not be having a second referendum and that a no deal scenario is better than a bad deal, implying that she will not be changing her stance.
Though a tough stance like this could be respected, the Pound was sold off and we saw GBPEUR rates fall by 2 cents on Friday- so on a £500,000 transfer into Euros, it would have cost an extra £10k by the afternoon!
Negotiations are now at a stalemate and the outlook for the Pound is now changing- A potential no deal is back on the cards which means the Pound is expected to fall, however, if we manage to see any change on this then the outlook will be reversed. If you have a transaction you are currently working on and would like to know how to be protected from these volatile market movements- then please let us know and we can tailor a strategy for you.
