The decision to leave the EU following the UK referendum in June 2016 prompted a sustained period of volatility in the Sterling Foreign Exchange market; by January 2017 the pound had fallen against the US dollar, from a high of 1.5018 on referendum day to a low of 1.1979.
Since then, volatility remains elevated; we have seen sterling trade back up towards 1.4400 in April 2018 before dropping below 1.2500 at the beginning of 2019. It is not uncommon to see high-to-low moves of 2% in a day.
The postponement of Brexit has further clouded market sentiment. Volatility trading the pound is likely to last as long as there is uncertainty over Britain’s relationship with the EU.
In such uncertain times, C. Hoare and Co. offers transparency, consistency and security in FX transactions. Each year the bank trades up to £1bn on corporate and retail customers’ behalf. We recognise customers have diverse foreign interests and currency requirements, and the treasury offers a comprehensive range of FX services. These include:
• A dedicated treasury relationship manager to take care of transactions
• Accounts in 22 major currencies
• Same-day delivery of most major currencies and same-day settlement on trades
• Limit orders and stop-loss orders: these offer opportunities and protection in a volatile FX market
• Forward FX contracts for specific future requirements: these allow customers to buy or sell currency at an agreed price at a specified time in the future
• Weekly FX bulletins: our treasury department provides up-to-date commentary on market sentiment and events likely to affect FX trading
Should customers wish to discuss FX matters in depth, our dedicated treasury relationship managers will be delighted to help. Please contact the treasury team on treasury@hoaresbank.co.uk
