Research from Smart Currency Exchange

Smart Currency Exchange – their commitment during the COVID-19 crisis

During this unprecedented and uncertain time, you may have noticed that the currency markets are particularly unpredictable. So far, we’ve seen volatility from the pound and other currencies as the coronavirus situation has unfolded.

Smart Currency Exchange remains conscious of the challenges facing each and every one of their clients and are available to help in any way they can. As Rightmove’s preferred partner, their aim is to fully understand the different financial and business challenges faced by each of their clients, in order to create the best solutions and guidance.

Here are some examples of currency pairs that you may wish to watch, should you be exposed to them:

USD/GBP

The US dollar reached an incredible 35-year high vs the pound last week. Many companies are looking to safeguard during the pandemic by hoarding USD and this provides individuals with the best opportunity since the 80’s to exchange them for GBP.

Despite this, the Bank of England’s second emergency cut to interest rates caused the pound to strengthen slightly, and as the markets began to stabilise, the dollar weakened. As we’ve said above, the markets are extremely volatile at the moment and it’s difficult to predict where this currency pair will move next. If you are planning to buy a property in USA it may be worth planning ahead by speaking with experts like Smart Currency Exchange. Contact them here: https://bit.ly/3aIDWTX

GBP/AUD

Despite GBP’s well documented drop against the USD and the EUR, it managed to reach a near 4 year high against the Australian dollar. Due to Australia’s close connection with China and the unexpected outbreak of COVID-19, the GBP/AUD position reached its highest level since the EU referendum.

If you were planning a move to Australia and as a result will move some GBP into AUD this year, now could well be the time to consider arranging an exchange or discuss putting a strategy in place. Speak to Smart Currency Exchange early to plan ahead.

CHF/GBP

Following the Bank of England’s decision to make a second emergency cut to interest rates, the pound has strengthened against safe-haven currencies such as the US dollar and Swiss franc. The Swiss National Bank made the decision to keep interest rates on hold recently, stressing that monetary policy alone could not fight the economic downturn presented by the coronavirus pandemic.

EUR/GBP

The euro strengthened to a 6-month high against the pound as sterling struggled with coronavirus worries. Because the UK has a larger trade deficit than, say, the Eurozone, the mechanics are such that the pound will tend to fall by more than other currencies, such as the Euro or Swiss Franc, in times of crisis.

The euro has benefitted from coronavirus related developments due to its status as a ‘funding’ currency, causing it to strengthen at times of market stress. However, as we’ve seen, this does not mean that the single currency is immune to volatility. It has suffered against the dollar and remains sensitive to talk of an impending recession.

Majority of property buyers will be experiencing a delay in their property purchase plans due to recent restrictions imposed by various European countries. This doesn’t mean that you shouldn’t plan ahead if you are still planning on buying in Europe or moving before the official Brexit date 31/12/2020. Speaking to an expert and doing your research can help with your plans. Contact Smart here: https://bit.ly/3aIDWTX

SGD

The Singapore economy experienced its first deflation since January 2010 at the beginning of this week and is expected to suffer further as Singapore shuts its borders.

The Monetary Authority of Singapore (MAS) will release its next six-monthly monetary policy statement at 8am on the 30^th of March, earlier than originally scheduled. Like most other currencies, the Singapore dollar is currently suffering against the US dollar due to the greenback’s safe-haven status but is stronger against the pound.

HKD

Earlier this month, the Hong Kong Monetary Authority (HKMA) announced a surprise 50 basis points cut of its base rate to 1.5%. Despite periodic speculation that HKD will break its peg to the US dollar, the HK Financial Secretary said that they will continue to monitor the situation and keep the peg stable.

How can Smart help?

Smart Currency Exchange would like to reassure clients that they will be continuing to work normally throughout the COVID-19 crisis.

They remain fully staffed and have measures in place to ensure that they will have no interruption of service.

If Smart can offer any help to you at all in these unprecedented times whether you are in the middle of the property purchase, planning one or would like to speak to somebody about your plans, please reach out to Smart Currency Exchange here: https://bit.ly/3aIDWTX

 

The team at Smart Currency Exchange extend their thoughts to all of those impacted by COVID-19 and wish you good health.