What next for businesses seeking to protect against Sterling Volatility Post Brexit?

With Brexit voters winning with a marginal 51.9%, the effects of Brexit are already being felt on the currency markets with Sterling already weakening against Euro by 5% with further weakness expected over the coming weeks.

This is a once in a lifetime event with markets in a state of shock. The realisation that the UK had voted to leave the EU has seen market sentiment reverse sharply. Not surprisingly, the biggest moves have been on currency markets with sterling plummeting.

Having risen to trade as high as $1.50 shortly after 10pm last night, on foot of an optimistic ‘remain’ vote, GBP/ USD opened this morning down at 30 year lows, at $1.34. With the key resistance level shattered to $1.37-1.38. This represents a fall of over 10% from where the pair was trading only late last night. Sterling weakness is also evident in the EUR/GBP cross, which is up close to 82p territory and has traded as high as 83p in Asian trading. On the currency front, sterling will remain under severe pressure, as will the EUR/USD pair, as markets contemplate the fallout and period of uncertainty that will follow the UK referendum result.

Barry Dowling, Co-founder of TransferMate explained, “The markets are echoing the financial crisis of 2008-2009, with investors deciding where their money is best placed, decisions to invest in the UK are likely to be affected which will have a further knock on effect on sterling. The implications for businesses are uncertain and varied…”

TransferMate have a 24 hour phone line 01 635 3700 and an online platform www.transfermate.com for any businesses concerned with sterling volatility and interested in discussing their foreign currency payments.