November’s currency update

Investors’ changing appetite for risk was the most important factor in the euro’s week.  When they leaned towards nervousness – as they did when Donald Trump edged ahead of Hilary Clinton in the US opinion polls – they bought the safe-haven euro, yen and franc. The three currencies were just about unchanged on the week against one another while the euro picked up a cent and three quarters from the listless US dollar.

Against all the odds it was sterling that took the honours among the majors, sharing first place with the NZ dollar. It added two thirds of a euro cent and strengthened by an average of 1.0% against the other ten most actively-traded currencies. The main factor in its favour was the high court’s ruling that parliament must approve the activation of the Article 50 process of leaving the EU. Rightly or wrongly, investors believe this improves the odds of an amicable divorce; one that will do minimum damage to the UK economy.

Eight months ago the Bank of England governor was unwise enough to tell parliament’s Treasury Committee that leaving the European Union might have adverse effects on the UK economy.  Since then, certain MPs have been on his case. Last month even the prime minister appeared to criticise the bank’s monetary policy. In recent weeks, because of this, investors were wondering if Mark Carney might leave the bank at the earliest opportunity in 18 months’ time when he will have been there for five years. The governor put an end to that speculation on Monday when he said he would stay for a total of six years, long enough to see through the supposedly two-year-long Brexit process. Investors expressed their appreciation for his commitment by buying the pound.

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  What next?

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Moneycorp are Sextant French Properties preferred currency partner and have been selected due to their great rates, great service and great solutions. These are some of the reasons they have transacted over two billion pounds for their clients.

Moneycorp has been in the business of moving money between countries and currencies for over 30 years and offers money-saving foreign exchange to customers ranging from blue-chip businesses to private individuals. We make money transfers simple and help you to manage foreign exchange rate movements.

Moneycorp also offer a number of different contract options for Sextant clients including a forward contract where you can fix a rate of exchange for a period in the future using just a small deposit, perfect to help take the risk out of the currency markets and budget for your French property purchase.

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This entry was posted on Monday, November 7th, 2016 at 5:02 pm and is filed under Currency exchange, Finance, Money transfer . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.


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