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Trade Negotiations crucial to the value of Sterling (Daniel Johnson)
Breaking News – Current six week highs on GBP/EUR and GBP/AUD call 01494 787478 and ask for Daniel Johnson if you wish to take advantage of current levels.
Trade Negotiations to dictate Sterling Levels
Trade deals will be vital to the value of the pound following the triggering of Article 50. Theresa May has been positive in regards to how she thinks trade negotiations will pan out. She spoke last week and stated the UK will be able to utilise the blue print of up to fifty current trade agreements already in place between the EU and other countries. Essentially copying deals that are already in existence to avoid the long drawn out negotiating process.The PM stated, “It will be possible to simply cut and paste deals with countries such as South Korea, Mexico and Jordan.” May has caused some controversy by now claiming the exit process could take more than the two year target. This is not surprising as I recall EU ambassador, Sir Ivan Rogers resigning from his roll stating the two year target was unrealistic. He stated “negotiations could take up to ten years.”
It is important to note the quickest trade deal ever negotiated by the US took four years.
GBP/EUR – When to trade?
If you are selling Sterling I would get in touch with a broker to monitor the markets and pick the correct contract to suit your individual requirement. Ii is vital in order to try and maximise your return. The French election at the end of the month may create an opportunity. Political uncertainty, historically weakens the currency in question.
If you are a Euro seller I would take advantage of current levels. The French election takes place on the 23rd April and it is very tight between Macron and Le Pen. Le Pen is the leader of the National Front as stated publicly her intentions to ditch the Euro and leave the EU. A majority victory has never occurred on the first round of voting, so it is highly probable it will go to a second vote between Macron and Le Pen on 7th May. If Le Pen gains power I would expect significant Euro weakness.
The timing of your trade is vital during such volatile times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. Please do get in touch by contacting me at [email protected]. Thank you for reading.
