Will the pound recover? (Dayle Littlejohn)

Another week passes and the pound continues to struggle against its counterparts. GBPUSD floats at a 30 year low and GBPEUR at a 3 year low. Looking ahead its difficult to see how the pound could improve against the major currencies. We have had a few post ‘Brexit’ economic data releases and they have shown a major decline, one to note is Purchasing Managers Index (PMI).

In addition the Bank of England have cut interest rates to 0.25% in line with current market conditions and made the decision to buy Government bonds in the form of Quantitative Easing. Furthermore the Governor Mark Carney has stated a future cut to 0% could occur if the UK economy continues to struggle.

It seems like its going to be a testing period for people purchasing a foreign currency HOWEVER if you are selling a foreign currency to buy pounds you are in a fantastic position compared to 3 months ago. For example if you trade €200,000 into sterling today compared to before the EU referendum, you will now receive an extra £20,000!!!

Its a quiet day on the markets today for the UK with limited economic data releases. The Eurozone will release their latest GDP numbers at 10am and the US are set to release their retail sales numbers at 1.30. I expect the pound could lose value against the euro today however make gains against the dollar as the retail sales figures are set to show a decline.

My area of expertise is property purchases and sales. Therefore if you need to purchase a foreign currency or you are about to complete on a sale, today is the day to get in touch to discuss your options and how we can save you as much money as possible. Feel free to email me the currency pair you are trading (GBPUSD, GBPEUR, GBPCHF etc) the reason for your trade (company invoice, buying a property) and I will email you with my forecast for the currency pair [email protected]. Alternatively please fill in the form below and I will be in touch within 20 minutes.

[contact-form]