The Pound has found life extremely tough going of late, with losses against most of the major currencies. This has been particularly apparent against the EUR & USD, with the Pound losing value in line with the current uncertainty surrounding the UK economy.
However, despite these losses it is not all doom and gloom for those clients holding GBP, as Tuesday’s positive spike for the Pound proved. Currency does not move in a straight line and therefore we will see opportunities for those clients holding GBP to take advantage of, even if a sustainable Sterling recovery is unlikely in the short-term.
Sterling has had a better week and the catalyst for the was Tuesday’s inflation data, which came out above market expectation. Whilst this spike cooled, the Pound was holding its position against the EUR & USD following the latest UK employment data and official Unemployment rate. Whilst the official figure of 4.9% came in as expected, average earnings were up and this should help to support Sterling’s position as we head into next week’s trading.
Thursday’s European Central Bank interest rate decision was something of a non-event but President Mario Draghi did elude to the fact that the central bank would extend the current monetary policy (QE) programme if necessary, news which is likely to help support the Pound around its current levels.
My overall feeling at the moment is that the Pound is suffering due to the unique situation the UK finds itself in and the uncertainty that corresponds with this. We will no doubt find out more information about how we will facilitate our Brexit and the trade deals that may be acquired and as each facet of this uncertainty is removed, the Pound is far more likely to gain enough support to drive its value up.
If you have an upcoming Sterling currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.
If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on email@example.com