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Expectation of GBP/USD rate after Brexit

  • 17-10-2019 4:41pm
    #1
    Registered Users Posts: 7,494 ✭✭✭ BrokenArrows


    The GBP has been held down for a long time now by the pure uncertainty of what the country is doing.

    The GBP has made improvements over the past week as its become more likely that a deal will be made.

    Lets assume an average deal is made, how much do you think the rate will improve?

    Would a £1:$1.40 be as reasonable value once we know whats happening?

    Im trying to decide if a certain investment is a good idea at the moment because it will likely not still be available after we know the result of Brexit.


Comments

  • Registered Users Posts: 212 ✭✭ Mach 3


    The GBP has been held down for a long time now by the pure uncertainty of what the country is doing.

    The GBP has made improvements over the past week as its become more likely that a deal will be made.

    Lets assume an average deal is made, how much do you think the rate will improve?

    Would a £1:$1.40 be as reasonable value once we know whats happening?

    Im trying to decide if a certain investment is a good idea at the moment because it will likely not still be available after we know the result of Brexit.

    I find it hard to see it go much over 1.35 on a Brexit deal alone. Other variables at play, which can also change.
    What is your timeframe?


  • Moderators, Business & Finance Moderators Posts: 7,818 Mod ✭✭✭✭ Jim2007


    Im trying to decide if a certain investment is a good idea at the moment because it will likely not still be available after we know the result of Brexit.

    If the deciding factor on an investment is the exchange rate then it just speculation and best passed on.

    And in any case the WA is only that starting point. The next immediate issue will be getting all 168 members of the WTO to agree the trade schedules. With Russian and Argentina involved and the 20 objections including the US, Canada and NZ etc... it could create all kinds of volatility, the UK may well end up on WTO terms for the next 10 years.


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