The Brexit roller coaster continues!
As we were writing the update GBP increased in strength off the back of news that the finance minister Phillip Hammond stated that Brexit talks with Brussles had been constructive and that lawmakers could vote on a revised deal as early as next week!
This has given GBP an artificial kick but we at 1FX are not ready yet to put our faith in GBP yet. However if more people join the Independent Group, due to their ‘middle of the road’ policies and how the market reacts to ‘Bremain’ news articles, we could see a significant recovery.
Nevertheless we could still be heading towards a no deal Brexit if the amendments to Theresa May’s deal don’t get voted through parliament which would severely impact GBP for the medium term.
In conclusion there is no point speculating with your business and margins, hedging something here is so important as the risk of GBP swinging either way is extreme and equally likely.
Have a good morning – feel free to get in touch