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Will UK GDP figures cause Sterling Euro exchange rates to fall even further? (Tom Holian)

Wednesday, October 26, 2016 1:06
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Tomorrow morning sees the release of UK GDP figures for the third quarter which is the quarter immediately post-Brexit and this could see GBPEUR exchange rates and GBPUSD exchange rates move very quickly both before and straight after the data release.

If we see the figures come out lower than expected then this could see Sterling fall very quickly against all major currencies as it will reinforce the problems caused by the vote to leave the European Union.

Yesterday Bank of England governor Mark Carney spoke at the House of Lords Economic Affairs committee concerning the Brexit issue. Carney has been criticised by some senior MPs as well as Theresa May for some of his comments since the Brexit and during yesterday’s meeting he hinted that he may not renew his contract when it’s due for renewal in 2018.

Indeed, both Mark Carney and Ben Broadbent who is the deputy governor of the Bank of England have said that they don’t appear to be too concerned about the value of Sterling so to me this could point to an interest rate cut at next week’s central bank meeting and typically an interest rate cut results in weakness for that particular currency.

Therefore, if you’re thinking about selling Sterling to buy Euros or US Dollar then it may be worth looking at organising this before next week’s interest rate decision.

If you don’t have the full amount of funds available at the moment then it may be worth considering buying a forward contract which allows you to fix an exchange rate for a future date and this will help to avoid the uncertainty as to where rates may move.

Having worked in the foreign exchange markets since 2003 for one of the UK’s leading specialist currency brokers I am confident that I can offer you better exchange rates than using your bank when buying or selling Euros and also help you with the timing of your transfer.

To find out more information or for a free quote then contact me directly and I look forward to hearing from you.

Tom Holian

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