Article 50 and FX - What it may mean for you

How will the triggering of Article 50 impact my travel money?

It depends where you are from and where you are travelling to! Visitors to the UK have seen holiday money going much further than before. We saw a major devaluation in the Pound after the Brexit announcement which means tourists living in the UK have seen reduction in the spending power of their travel money.

We are expecting further volatility going into 2017.

 

Do you see pound going back to its former glory? Was great to remit money to India when it was hovering around 95-100?

If the last couple of years have taught us anything, it’s how volatile the markets are - so anything is possible!

 

What role does the Bank of England have to play to protect the UK economy during the Brexit negotiations?

The BoE has a pivotal role to play in protecting our economy by keeping inflation under control as prices start to rise; one tool they can utilise is hiking interest rates. Mark Carney and his troops have recently increased their growth forecasts for the UK post-Brexit, showing a level of optimism.

 

Can we expect a strong pound against the dollar?

After Trump lost the healthcare bill recently we saw the dollar weaken, noticeably against the Pound.

For the next couple years post Brexit expectations are for further volatility. As ever, RationalFX is optimistic for the future!

 

Should I hold back sending money? Or this is the good time? Your thoughts?

GBP/INR is currently trading at the lowest levels we have seen since late 2013, so it’s not a great time at the moment! You could consider looking at forward contracts if you are concerned about the rates dropping further?

 

How will the pound behave over the next 2 years, during the Brexit process, and from 2019 onwards?

We are expecting currency volatility to continue for the next couple of years in light of the Brexit negotiations.

 

Just got back from Jamaica where the exchange rate wasn't great- is this the norm for GBP now or is the worst over?

Sorry to hear you are back from your holiday - I'm envious of your trip! This time last year GBP/USD was around the 1.44 region so we have seen a considerable devaluation of the Pound in 12 months. With the ongoing Brexit negotiations many economists believe the Pound will have a volatile couple of years.

 

I'm travelling to Spain this Easter can we still expect a strong pound then?

The Pound has strengthened recently against the Euro so the rate is moving in your favour. With Easter fast approaching major news on the French election could have an impact on the rates.

 

The Scottish Independence in 2014 caused the Pound to lose a significant amount of value, causing exchange rates to drop. Are we in store for the same reaction during the Brexit negotiations over the coming two years?

There are lot of variables and events that could impact the Pound over the coming two years. We have tools and hedging strategies that can help mitigate your currency risk. We expect volatile times ahead.