By Jonathan Watson

Following yesterdays Emergency Budget, we have seen Sterling strengthen. This presents a great opportunity for anyone buying Euros, US dollars, South African Rands, Kiwi dollars, Ozzie dollars, Canadian dollars and more!

Sterling has strengthened gaining at least a cent against all of the above.

This was anticipated and it is good to see the markets warming well to the budget. The UK’s budget deficit position is one of the worst in the world and urgently needs a tough government prepared to tackle it. The flipside is that such a tough budget might dampen the recovery. We have just come out of one of the worst financial disasters in living memory and the recovery in the UK and the rest of the world is precarious. Many of the measures will not be implemented until 2011 and the effects therefore, may not be felt until later that year and perhaps even in 2012.

Only time will tell the real success of these measures and we will watch this closely to see how it affects the currency markets.

There is without doubt future uncertainty long term, but the short term reaction is Sterling positive, presenting a good time for anyone buying foreign currency with Sterling to make a transaction.

If you have any bank to bank electronic foreign currency transactions to make and wish to acheieve commercial and preferential rates please fill in the contact form and an experienced trader will be in touch.