Pound Sterling Forecast – 24.08.12 – How to get the best sterling exchange rates

UK GDP Figures just released showed the Economy shrank less than expected. The revision upward from -0.7 to -0.5% was not wholly unexpected and despite being an improvement is nothing to get too excited about.

I expect the pound will continue to struggle against most currencies and anyone holding out for major improvements in the short term should brace themselves for further losses. The best options for managing currency risk will be different for each situation as each client will have their own specific requirements and limitations with which they have to work to. For a full discussion of what you should be thinking of and how to approach your particular exchange, please contact me Jonathan Watson on 01494 787 478 or [email protected]

GBPEUR – 2 week LOW         GBPUSD – 3 month HIGH        GBPAUD – 1 month HIGH         GBPCAD – 1 month HIGH       

GBPNZD – 5 week HIGH         GBPZAR – nr 1 Year HIGH       EURUSD – 7 week LOW

GBPEUR

The Euro has clearly found some favour in recent weeks as US QE expectations weigh on EURUSD, optimism weighs on a Spanish bailout and Greece appears to be offered more time. A fall in borrowing costs of Italy and Spain too has helped ease the pressure of the last few weeks. 1.30 for the time being looks out of the questions and anyone holding out for this would do well to remember we were at 1.1978 at the turn of the year and the highest the rate has been is 1.2880, and that was over a month ago.

The recent change in mood surrounding the Euro may well turn out to be misplaced down the line, but for the time being faith has returned for the Euro and the pound, which is still in a recession looks unable to capitalise.

GBPUSD 

As I have been expecting GBPUSD continues to ebb higher and we are currently at a 3 month high. I would not rule out the 1.60 rate in the coming weeks and months particularly if there is more QE in the US. QE is however not quite the dirty word it once was on both sides of the Atlantic and consequently the market may have already priced this in. Any further gains on this pair may be hampered by the general poor state of the pound.

GBPAUD, GBPCAD, GBPNZD, GBPZAR

A surprise fall in Japanese Imports and Chinese warnings over their economic growth caused a wobble on the Aussie proving it is not immune to the general slowdown engulfing the rest of the world.

This has had a knock on effect on the Kiwi, Cad and Rand, presenting some excellent buying opportunities (see above).

For a free, no obligation full discussion of your options and more detailed forecast please speak to me directly on [email protected]

It is always worth a second opinion and I have never had any trouble getting my clients the very best rate.

Thank you,

Jonathan

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