Will the Bank of England keep the Pound rising? Vital week for Sterling exchange rates!

The pound has defied most expectations and is much higher against all the majors (and most of the minors) as it shrugs off the Brexit blues. Somewhere between Theresa May confirming we wants a hard Brexit and calling a snap General Election, sterling has rocketed. Who would have thought? The improved certainty over the pound can of course only carry it so far so the big question is what lies ahead next for sterling exchange rates and how can you maximise your currency exchange in this period? News this week could easily change the picture, if you have a transfer buying or selling the pound then this news

Between the highs and the lows in 2017 GBPEUR has improved 7 cents, GBPUSD 9 cents, GBPAUD 16 cents and GBPNZD 19 cents! These are some absolutely amazing statitsics and food for thought for clients buying these currencies concerned. There are equally impressive improvements across the board. In the main this is down to improved economic data and a confidence in the end result for the UK. By calling the election and moving the next General Election until 2022 it means Theresa May has much more time to negotiate and will not be forced into accepting a poor deal to appease voters ahead of what would have been the 2020 General Election. Such good feeling is based on sentiment and with many years to go before we get to that point there is of course plenty of potential for surprises and shocks which could upset the pound!

This week is vital as we have the ‘Super Thursday’ releases of the Bank of England Interest Rate decision and the Quarterly Inflation Report. The pound could easily struggle here if we see the UK’s growth forecast lowered but overall I expect an upbeat Bank of England and sterling to rise. If you have a transfer buying or selling the pound making some plans in advance is sensible to try and capitalise on the volatility. Sterling is performing very well but there are plenty of risks ahead including the UK’ s General Election and of course the prospect of Brexit negotiations turning sour.

We offer a personal proactive service to assist with the timing and planning of any currency exchanges that you will need for the future. If you have a transfer to consider and would like to discuss the current market and best rates please email me Jonathan Watson on [email protected].