A Great Opportunity To Buy GBP
As you’ll be aware, over the weekend, Boris Johnson confirmed he would be campaigning for the UK to leave the European Union, and for many, the potential damage that a ‘Brexit’ could have on the pound is a key concern.
Following on from the Mayor’s announcement, on Monday, we saw GBP take a huge battering, where the currency was down 2.1% against USD, at $1.402, the biggest drop since March 2009. Against the Euro, the pound was also down 1.2% to €1.2774.
Although, since Monday, the pound has been trying to regain its losses, GBP is now even weaker against USD and EUR, with inter-bank rates floating around GBPUSD 1.3937 and GBPEUR 1.2703, at 2.46pm today (Friday).
The drop we have seen this week is dramatic and is unlikely to stay at these lows. Regardless of what happens with the referendum, we’d be years away from implementation, should the UK decide to leave the EU. With this in mind, we would recommend that anybody with EUR, USD or AUD that needs converting to GBP takes advantage of this current weakness.