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Selling the Pound? When should I move? (Daniel Johnson)
Brexit still dictating Currency Levels
GBP/EUR,GBP/AUD and GBP/USD are currently very volatile and very difficult to predict. Normal data releases that usually have impact on the exchange are no longer as prone to cause movement with Brexit negotiations still being the key market mover.
Yesterday Theresa May gained the right to trigger article 50 after Labour’s Harriet Harman amendment to the exit bill was voted out. The amendment was intended to protect the rights of EU nationals that are currently residing in the UK.
I would now expect the bill to go through without much hindrance from the House of Lords, following this I would expect a far more thorough plan in regards to the exit process to be released. The currency market reacts very badly to uncertainty, when some form of certainty is returned to Britain’s international trade Sterling will rally. Trump has already been very forthcoming with getting a trade deal in place with the UK, as has Australian Prime minister, Malcolm Turnbull.
Selling Sterling short-medium term? Get a Broker.
If you have to sell Sterling, your time scale on your trade will have a massive impact on your return. Short-medium term sellers need to be in touch with an experienced broker. It is vital to have an expert to assist in your trade during such a volatile period. Buying currency is not like buying a new car, shopping around for the best price and purchasing with whoever is the cheapest. The expertise of your broker can make a significant difference in your return. Timing and contract selection can be crucial.
For example, if there is a Spike on GBP/EUR and the market hits 1.20, but your funds are not available for three weeks you can place a Forward contract. By putting down a 10% deposit you can secure the rate at existing levels and set a date to pay the remainder, essentially buy now, pay later.
If you have a longer time scale a Limit order should be considered, the client would set a target rate and if that rate can be achieved at any point even outside trading hours the currency will be purchased. the chances of missing a short term Spike are drastically reduced.
If you would like my assistance I would be happy to help. There is no obligation to use me as your broker by doing so. I will provide a free trading strategy and I am also prepared to perform a comparison against your current provider. I can be contacted at [email protected]. Thank you for reading my blog and I look forward to hearing from you.
Daniel Johnson
Foreign Currency Direct
Source: http://www.poundsterlingforecast.com/2017/02/09/selling-the-pound-when-should-i-move-daniel-johnson/
