- Pound Sterling rallies ahead of the Referendum
- Sterling exchange rates highly attractive
For what It’s worth, current trading levels have been overwhelmingly in the favour of the Pound, which comes as a surprise given the upcoming Referendum on Thursday.
As it stands, GBPEUR rates are trading in the 1.30’s, to put this into perspective, the last time prior to May that we saw these levels was January of this year. And prior to last year, we didn’t see these rates for almost 8 years. GBPUSD rates are also following a positive trend with rates hitting 1.47 on the exchange today, a 6-month high.
Yellen’s speech at 2pm today regarding the current US economic affairs has the potential to rattle rates further. Will these rates continue? This of course, weighs heavily on the results on Thursday. And with polls suggesting a neck on neck race the outcome is still highly unpredictable.
Now is a good time to buy Euros and US Dollars
With all of this in mind, those looking to buy Euros or US Dollars may wish to do so whilst this window of opportunity is open. The outcome of the Referendum could be a huge gamble especially if you are transferring large amounts of currency.
For example, a £100,000 purchase of Euros would give you €130,000 but in the event the UK were to withdraw from the EU, there is a potential you could be €15-20,000 worse off. The same could be true for GBPUSD.
Buy Euros or US Dollars before the EU referendum
Although you may be tempted to gamble the results of the referendum, you should consider the above before making your decision. The next couple of days will likely be volatile and rates could move either way depending on the outcome of further polls. It may be a safer bet to make use of the recent gains for Sterling as they may not be around after the weekend.