Today's the day that the UK leaves the EU. With so much being made of what may happen to the UK economy in the short-term and long-term, what can we expect for the Pound following on from this week?
The GBPEUR rate was particularly volatile in 2019 as political announcements surrounding Brexit resulted in large gains and falls. There is reason to believe that now there is more certainty around our departure from the EU that the rate will be more stable over the next 12 months. On the flipside negotiating a trade deal with EU by the end of 2020 is now the focus and as both sides try to get the upper hand, fluctuations in the rate are still a possibility.
While particularly strong this year the Dollar may also be set for its own difficulties this year as US political developments dominate investors’ confidence in the markets. The Presidential election, a trade war with China and tensions in the Middle East, there are certainly events that could see the Dollar weaken.
Banks every year will make predictions focusing on what the major exchange rates will do throughout the year and in our latest article we have picked out some on the major banks to look at their forecasts for the Pound, Dollar and Euro throughout the first quarter in 2020.
Read our full 2020 FX forecast round up and see what key events and data is likely to affect the three major currencies over the next 12 months: http://bit.ly/2RM2W5i
Posted in Business Resources on Jan 27 2020