The Pound had a slightly better end to trading today as we saw Sterling exchange rates rise across the board in the afternoon.
The question we now need to ask is was this movement down to the Pound starting to come back into fashion or was it down to a bout of profit taking from those who had made money from the recent Sterling weakness we have seen.
The next 24/48 hours will more than likely give us the answer in my opinion, if Sterling starts to make a recovery in the next few days then it may well be showing some resilience at last and this could be a sign that the Pound is indeed fighting back. Should Sterling drop away again in the next day or so then this may be a sign that movement this afternoon had been mainly attributed to profit taking and that the Pound may be in for another drop.
I personally feel that the Pound is currently undervalued, however it may still get a little worse before it gets better as the uncertainty hangs over the head of the U.K as we wait to see if we do find out any plans for how we will approach Brexit.
Friday we have an extremely important day for U.K economic data where we have manufacturing and industrial production, along with Trade Balance figures which will be key as to how the Pound performs during Friday morning trading.
Over in the States we have Non-Farm Payroll data which can impact all major currencies as it impacts global attitude to risk. The data measures the number of people in Non-Agricultural employment (due to the seasonal impact on agricultural employment) in America and predictions can be fairly wrong. Because the markets price in expectations in advance, when they are widely wrong the currency markets do start to correct themselves swiftly which can lead to sharp markets straight away.
If you are looking to make a currency exchange either now or in the future then it is well worth getting in contact with me directly. I can help you both with achieving an extremely favorable rate of exchange when you do buy along with helping you time when you buy which can be even more important. Just over the course of this week buying €400,000 has fluctuated in cost by over £10,000!
Feel free to email me (Daniel Wright) on firstname.lastname@example.org with a description of what you need to do and I will be more than happy to get in contact with you personally to discuss the options available to you.