The pound has had another volatile couple of days against the euro.
It broke below 84p yesterday after comments from the UK's Brexit minister David Davis to the effect that Britain would consider paying to access the Single Market after leaving the EU, easing market fears of a hard exit.
But this morning sterling moved back above 84.5p.
Managing Director of Treasury Solutions John Finn said the difference between sterling’s high and low this year is 28%, which is “massive”.
“To put it in perspective the average over the previous five years was about 10%, so you’ve three times as much volatility this year. And the outlook for 2017 at the same time isn’t great either”.
To help companies lessen the impact of volatility in the exchange rate, Mr Finn said they should outline what their objectives are.
They need to ask themselves “do I want to make money from currency dealing or do I want to make it from selling my services and my goods”.
He added firms should agree at board level what exactly the approach is to manage currency.
He said considering the break-even point is also important.
“We need to understand that because obviously beyond that point you’re making losses you can’t afford.”
Mr Finn concluded by highlighting that companies should try and understand the difference between currency moves and the relative effect on sales.
“Every company should know going into 2017 if sterling falls by 3%, do I need to make an extra €50,000, €100,000 in sales?”
On interest rates, Mr Finn said the euro zone base rate is unlikely to move next year.
“I think that’s almost as certain as you can get, which is good news for tracker holders.”
He said fixed rates my increase slightly and the US Federal Reserve may increase rates soon.