Monday, 29 February 2016

Monday, 29 February 2016

Where will the Pound go from here?


One thing that we cannot ignore at present, no matter how hard we might try, is the E U referendum just announced by David Cameron.

How will it impact upon us? The truth is that nobody knows, but there is an awful lot of uncertainty and speculation. This will no doubt continue right up to 23rd June, and perhaps even beyond.

In the “stay in” camp, we have DC plus a split cabinet, and the other major political parties. On the “Brexit” side, are some high profile names, including Boris Johnson, Michal Gove, Chris Grayling and others, plus the normal EU sceptics. It is sure to split opinions rather like Marmite. Where exactly do you turn to for the truth though? In total there are over 1/3 million Brits living in France that could be impacted by the outcome of the referendum.

One thing that we cannot ignore at present, no matter how hard we might try, is the E U referendum just announced by David Cameron.

How will it impact upon us? The truth is that nobody knows, but there is an awful lot of uncertainty and speculation. This will no doubt continue right up to 23rd June, and perhaps even beyond.

In the “stay in” camp, we have DC plus a split cabinet, and the other major political parties. On the “Brexit” side, are some high profile names, including Boris Johnson, Michal Gove, Chris Grayling and others, plus the normal EU sceptics. It is sure to split opinions rather like Marmite. Where exactly do you turn to for the truth though? In total there are over 1/3 million Brits living in France that could be impacted by the outcome of the referendum.

The most important thing for many buyers (UK buyers certainly) is the question, "where will the Pound go from here?" If you were an international investor / fund manager and you have the option to invest in Sterling, (with the EU vote imminent) or elsewhere (where you avoid that hassle / risk), then where would you put your money? The answer is that investors are normally very cautious, and therefore Sterling is unlikely to find many buyers in the months ahead.

In short those who are trading from the Pound to buy other currencies will have to choose their opportunities very carefully or buy on a forward contract when the opportunity arises to guarantee a rate.



Peter Elias

www.allez-francais.com

05 55 28 46 40
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