When should I transfer my Sterling? (Tom Holian)

The Pound has made some solid gains during the last couple of weeks against both the Euro and the US Dollar with GBPUSD exchange rates now their best level since the Brexit vote back in June 2016.

The most recent Brexit negotiations in December went well which included agreeing citizens rights for those living both in the UK and in Europe. The amount that the UK is due to pay as part of the divorce bill and also the Irish border issue.

With trade talks due to resume in a few weeks time there is an expectation that things may even be decided by October and this is in part one of the reasons why the Pound has held steady against the Euro.

Last week both the Spanish and Dutch finance ministers both came out and suggested that they want the UK to remain as close as possible to the European Union.

Half of UK trade goes via the European Union so there is clearly an inherent risk to the UK economy in the longer term but the EU is also heavily reliant on the UK so I think when the discussions begin again I think we could see a bit more of a positive outcome.

Earlier this week Deputy Governor of the Bank of England Ben Broadbent suggested that the next change in interest rates would be an increase but he did not give away when he expects this to occur.

However, general market expectation is that if inflation continues to remain above the target then we could see another interest rate hike towards the end of the year.

The Euro has also dropped from its three year high recently against the US Dollar and it appears as though one of the benefactors of this is Sterling which is good news for anyone looking to send money overseas.

UK Retail Sales are due in the morning and this could have an impact on Sterling exchange rates as the data covers the Christmas period so if the figures come out better than expected we could see Sterling increase during the course of tomorrow.

If you have a currency transfer to make and would like a free quote compared to using your own bank or simply want to compare rates to buy or sell Euros against your current foreign exchange provider then feel free to get in touch for a free quote. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help save you money on exchange rates.

Email me directly and I look forward to hearing from you.

Tom Holian [email protected]