“Markets have been caught off guard once again by a shock election result and a wave of new political sentiment amongst the British public. We anticipated that Sterling would fall at the slightest hint of uncertainty; and this surprising and ambiguous situation will only cause more market volatility.”
“This morning’s news raises myriad questions about the future direction and strength of the UK economy, not to mention the UK’s position in negotiating its divorce from the EU.”
“Investors, traders and representatives of UK business are all calling on UK politicians to consider the country’s economy carefully as a matter of urgency; and to direct their attention to the best possible Brexit outcome for both the people and businesses of Great Britain.”
What next for the UK Government?
Ricky Nelson continues, “The Conservatives and the Democratic Unionist Party are awkward bedfellows, as, although the DUP are Pro-Brexit, they have also consistently voted against Tory austerity policies. However, the speed with which Mrs May has acted in cobbling together a coalition will certainly be greeted warmly by markets in the short term, as there is unlikely to be a power vacuum at the heart of Westminster just as the Brexit process is about to begin in earnest.
“For now, the Brexit talks will not be derailed, however May is now seen as vulnerable and could be subject to leadership challenges in the future, particularly if negotiations with our European partners do not begin well.”
What about personal currency exchange?
Senior Currency Consultant at Halo Financial,
Joe De Berniere, commented:
“The unexpected election result has seen Sterling lose ground across the board – and further weakness seems likely. The markets strongly dislike any uncertainty and we are on course for the most uncertain time in recent UK political history, meaning there is an expectation the Pound will continue to fall.”
“With this in mind, it may be prudent to act sooner rather than later for holidaymakers or overseas property buyers/owners looking to convert their Pounds. Alternatively, you can make use of currency planning tools. A stop loss order helps protect against negative market movements; a limit order helps you make the most of improving exchange rates.”
“It could be an idea to place limit orders at your most desired exchange rates in the current environment, just in case we see a sudden, short-lived, spike in the Pound – however unlikely – during this period of political turmoil.”
“For an extra layer of security – and to act as a safety net in case of further Sterling weakness – stop losses can be very effective. Seek guidance from a specialist to make the situation work to your advantage and protect against the threat of currency risk.”
About Halo Financial
Halo Financial is a leading UK foreign exchange brokerage, offering a comprehensive range of services to individuals and businesses since its inception in 2005. The business prides itself on offering a flexible and personalised approach for each of its clients, simplifying the seemingly complex foreign exchange market to maximise savings in currency transactions, protect against currency risk and make money go further.
Staffed by qualified technical analysts, the company is authorised by the Financial Conduct Authority and HM Revenue and Customs.
“Excellent”, “Reliable”, “Professional”, “Knowledgeable”, and “Helpful”– just some of the great feedback received as a Gold Trusted Service Provider for Feefo.com. The team at Halo are proud that customers rate their services so highly and are happy to recommend to others. The company is always striving to provide the best possible service and to innovate services and products in line with customers’ ever-evolving needs.
Halo Financial won Best Customer Focus category in the 2016 Best Business Awards; received OPP Gold for Best Supporting Service; the Gold Award for Financial Support and Innovation from Relocate Magazine, Commendations in the 2016 and 2017 Moneyfacts Awards and has 5 out 5 Star Customer Gold Merchant Status via independent review website, Feefo.com, winning their Gold Trusted Service award.
For more information, infographics and the latest currency insights, visit www.halofinancial.com/news