For those who follow currency news, it is, perhaps, restating the obvious that the British pound has been through its fair share of highs and lows in recent months as the Brexit vote draws ever closer. It doesn’t taken advanced currency exchange software to realise that the currency markets are in a period of turmoil. As polls continue to demonstrate a constantly shifting balance of influence between the ‘remain’ and ‘leave’ camps, the pound has sent for-eign exchange traders down a rabbit hole of frantic phone calls and urgent conversations with clients.
As we saw in the opening days of June, the pound was unable to achieve the bullish start that analysts had hoped for. As the ‘leave’ camp gained greater traction amongst voters, ex-change traders were hesitant to buy into the currency due to the potential for massive de-clines in the short term. That being said, a variety of metrics have been issued recently, such as the May Construction and Services PMIs, which may help to offset the negative effects of Brexit-inspired political and economic insecurity.
Perhaps yet another reason that the pound has been unable to shake off the shadow of Brex-it is due to the fact that typical campaigning methods used by politicians and political estab-lishments – such as the Bank of England – have failed to impress voters who have long ago grown cynical regarding their own representatives. Although outright fear-mongering on be-half of both parties has helped to serve as a ‘brute force’ influencer on some undecided vot-ers, the fact remains that deeply held convictions regarding immigration, economic produc-tivity, and a general sense of British identity will determine how this vote ends, not the base-less pandering of lobbyists and other promoters.
Of course, the pound will also be affected by various news being reported out of the US, in-cluding the monthly non-farm payroll data. Federal Reserve chair Janet Yellen has indicated that any move to raise interest rates in the short-term will likely be influenced and moulded by the outcome of Brexit, which is reasonable given the extent to which either outcome will in-fluence the economy. Those hoping to stay abreast of current rates can do so using any one of several industry standard currency exchange software packages.