Currency predictions after Brexit
Question
What are the predictions for the strength of GBP against the Euro & US Dollar after Brexit?
This questions was asked as part of our webinar on ‘What exporters need to know about Brexit in 2017’. You can find a recording of the webinar here:
https://opentoexport.com/webinars/what-exporters-need-to-know-about-brexit-in-2017/
Answer
The presenters at the Brexit webinar are advisors in exporting procedures, and not foreign exchange advisors, so it is not realistic to ask them to offer predictions. This is a question which should be addressed to a foreign exchange broker.
Based on experience so far, it is not unreasonable to expect that sterling will continue to be weak during the exit negotiation phase. Businesses should also expect there to be sudden and volatile swings in reaction to new developments, political statements etc in the next two years. Clearly it would be prudent to take some measures to protect yourself against this volatility, but the type of service that you consider will depend on your specific business, and you should consult with foreign exchange experts.
It should also be remembered that Brexit is just one of a number of areas of major international uncertainty and upheaval at present which have the potential to disrupt currency markets.