It’s Finally Here…

Joe Mayhew Senior Currency Broker - It’s Finally Here…Written by:
Joe Mayhew
Senior Currency Broker
T: 01442 892 069

After months of discussing, dissecting, arguments and polling- the EU Referendum is finally upon us. For the casual bystander it has been one of the most divisive periods of British political spectacle in recent memory.

There have been highs, watching the Tory civil war has been particularly entertaining, and epic lows in the tragedy that befell Jo Cox, her family and this country. One fact remains amongst all of the noise; today we make one of the most important decisions in a generation.

Here at Foremost Currency Group we have bore witness to the financial implications of the squabbling, power struggles and propaganda plaguing markets in recent months.

In just under a year we have seen GBP/EUR fall close to 15% due to the referendum and a number of other exogenous factors; yet, the most prevalent question we are being asked by clients currently concerns the potential outcomes of today’s vote.

GBP/EUR exchange rate graph

GBP/EUR exchange rate graph

The general consensus is that the referendum will produce a binary outcome: there is no middle ground. It has been suggested that, should we leave, sterling pairs could lose 10% or more. Were we to stay, GBP crosses could claw back an additional 3% or so.

It is worth noting that these are short to mid-term outcomes; the decision made by Britons in the polling booths today is whether to follow Boris and Farage into the unknown and trust that their faith and knowledge in their desired outcome outweighs their own political ambitions.

The alternative is to follow the status quo; to maintain ties with those we trade with: to continue to shape the future of our economies and, ultimately, to remain as a leading voice in deciding our collective future.

How we choose today will have enormous implications on the currency markets and for the thousands of the private and business clients that trade with us. Whilst we may cast our own vote and have our own say on the outcome it is worth remembering the old adage of our American cousin Benjamin Franklin: “By failing to prepare, you are preparing to fail”.

Over the past few weeks and months Foremost Currency Group has been helping individuals and businesses prepare themselves for the potential outcomes of today’s referendum. If you have a currency requirement it is not too late to discuss this with your account manager and allow them to offer suggestions to help mitigate your risk.

Get in touch today to discuss your transfer; by considering your budget, timescale and currency pair they will tailor a strategy bespoke to your requirement that will assist you in making an informed decision. Click here if you don’t have an account with Foremost Currency Group to register for a trading facility today.

To keep up to date with all our currency news, visit our Currency News section on our website here.

Joe Mayhew
Senior Currency Broker
T: 01442 892 069