Even though we have seen the largest rise in the value of the pound since March as a possible deal on the Irish side of things seems possible the markets remain cautious as there is still a long way to go to snatch a Brexit deal ahead of the October 31 deadline.

The Pound-to-Euro exchange rate advanced 1.91% to 1.1306 on Thursday, its highest level of the month; but we note that the currency is still trading still short of year's highs located towards 1.18. Friday morning bought further gains for the pound with the Euro slumping to 1.1380.

As far as the dollar is concerned we saw markets rise 1.84% from 15.00 on Thursday afternoon to 1.2452 by 18.00. So far this morning we have seen further moves up through 1.25 to the highs of 1.2540.

Who knows how more the pound has to move on this news and will it be the start of the final solution of Brexit, or will we see the pound bubble burst, as we saw in mid-September and the market rebound back to levels which we have become somewhat accustomed to.

Importers – Is this the time for you to benefit from this positive movement in the pound and maybe tie yourselves in to a month or two, or grin and bear it and hope it is the final movement up and solution that I think the country has been waiting for.

Exporters – With any appreciation of the pound like this it is always difficult to predict any short or long term outcome but most of all it is important to protect your margins especially if deals are already done and there is a possibility of profit dwindling away.

We are always on hand to give as much help and guidance to any company who is unsure about their current situation or what might be the best action to take. If you are not forward hedging either way you are always be going to leave yourself open to currency fluctuations like we have seen over the last 24hrs and with potential losses which might become irreversible.

Remember, don’t expect to get your forward buying correct every time, if you do, give up your day job and become a currency trader and you will make a lot of money, but to do something will at least tie in your profit long or short term and guarantee a consistent margin.

If you think we can help please do get in touch.