Where will Sterling end the year?
- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- December 7, 2017
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If we can come to a suitable solution surrounding the issues around the Irish border and agree on a trade deal we believe that the pound could end the year against the Euro at 1.15 and 1.33 against a strong dollar.
If we do not agree on a deal by year-end then some analysts predict 1.10 against the Euro and 1.25 against the dollar.
It really does all hang on the outcome of the upcoming negotiations due to start tomorrow.
Last month, the BoE added back the 25 basis points it took off borrowing costs in the aftermath of the Brexit vote, taking Bank Rate back to 0.50 percent, but it won’t act again until towards the end of 2018 when it will add another 25 basis points.
The eurozone economy has emerged as a star performer this year, outshining Britain, and the European Central Bank announced in October a cut to monthly bond buying from January. It is expected to wind down its asset purchases next year.
Now is the time to really assess your currency needs going into the new year, with prices currently above the averages we have seen this year, give us a call and we can together analyse the best way forward for you, mitigating any foreign exchange exposure.
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