25 January 2019 – Sterling strengthened to an 18 month high against the Euro ahead of next week’s parliamentary vote on PM May’s ‘Plan B’. The pound is now 5% stronger since December as financial markets continue to price out the chance of a No Deal scenario. For Irish businesses, sterling volatility has returned with this year’s trading range already larger than the entire 2018 range, and we expect that to continue.
Next week is likely to bring further volatility as Tuesday’s vote, and crucially the amendments to the bill, should see further moves in Sterling. Since December we’ve been highlighting the two-sided risks for Sterling to customers and given the 5% move, these levels offer excellent value for exporters in particular to reduce the currency risk in their business.
Written by Lee Evans, Head of FX Trading, Bank of Ireland. Information correct as at 25.01.19 at 12.15pm.
22 January 2019 – Watch our Bank of Ireland experts Jennifer Howett, Lee Evans and Pierce Butler give a clearer picture to businesses on the latest Brexit news and answer the key questions customers are asking about Brexit preparations. Watch here.
22 January 2019 – What will happen to €/£ outlook under different Brexit scenarios? Read our expert’s latest views Read more.
17 January 2019 – Bank of Ireland Global Markets Boosts Foreign Exchange facility to €50 Million We have increased our unsecured FX facility to €50million to meet customer demand. This supports businesses in proactively managing FX and interest rate risk, fixing their foreign exchange exposure at competitive market rates on the day they agree a contract with a customer or supplier, protecting their profit margins from adverse currency movements. Read more here