Back in January of this year, when the Brexit date was set at 29 March 2019, we looked at the potential impact of the Brexit agreement on the Pound in the result of a ‘Soft’ or ‘Hard’ Brexit, using the XE Brexit Barometer.
Now with the process being delayed to 31 October, there is still uncertainty regarding how the UK will leave the EU, with Michael Gove confirming that the UK is ‘working on the assumption’ of a no-deal.
This year, the pound has been negatively affected by ongoing concerns of a disorderly Brexit and political uncertainty. What we do know is that you should prepare for all outcomes. So how can you prepare for a deal or no-deal Brexit?
What could happen to GBP on the 31st October?
Today, under the new Prime Minister Boris Johnson, the government has described a no-deal exit as a “very real prospect”. As chances of a no-deal Brexit increase, we could look to see lows of below 1.2000 (£/$), and should the UK leave the EU in a disorderly manner, there is further risk to the downside.
What does this mean for my transfers?
We’ve put into basic form what the potential changes to the Pound could mean for your transfers.
Protect your money in uncertain times
You can never be sure what the market will do, but there are ways to decrease your risk. By setting up a Rate Alert, you can receive an alert when a specific rate is reached. This means that you can be notified when the rate drops, or soars, helping you to transfer at a time that suits you best.
Whatever happens, our currency experts will be monitoring events as they happen. If you are unsure about how to manage your international payments, or protecting your business from a further fall in the pound, XE can provide you with assurance and certainty during periods of instability. Our team of experts are on hand to guide you through Brexit and beyond, whatever the outcome.
Nobody can predict for sure what will happen next, or how the UK will be impacted once a deal has, or has not, been reached. It seems reasonable to assume that there will be volatility for the pound whilst the deal is being negotiated.
We can be your eyes and ears in the market, with a range of currency tools to help you monitor market movements.
*Special Notes: The figure is based on the live mid-market rate, correct as of 10.00BST on 09/08/2019, and are provided for indicative purposes only. Live mid-market rates are not available to consumers and are for informational purposes only. The rates we quote for money transfer can be selected via the page on our website ‘Live Money Transfer rates’.
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.