Today at 9:30am we have the Bank of England minutes where we are anticipating they will have discussed further Quantitative Easing (QE) which could cause some Sterling weakness this morning if this is the case. Currently the total amount of QE in the UK is £325bn and the rumours circulating are that another £50bn will be injected through the Central Banks asset purchasing scheme (QE). As we have seen in the past just the mention of QE can weaken Sterling exchange rates so should the minutes show that the Bank are considering pumping another £50bn or even more into the economy it is likely to be taken as a sign that the Bank of England believe the UK economy is in a bad way and hence needs this stimulus.
In the meantime we heard yesterday from the G20 summit that US President Obama has stated he is encouraged by European plans to tackle the current debt crisis. As the G20 summit came to an end Obama stated that he and other world leaders welcomed the move to recapitalise the Spanish banks and was positive about the news regarding the Greek elections and their plans to form a coalition. Comments such like this are likely to bring some confidence to the Eurozone and therefore Euro exchange rates so we could see some Euro strength today especially against the Pound following this mornings minutes.
So, if you need to transfer money abroad and are looking for the best exchange rates make sure you speak to one of our experienced currency brokers who will be happy to discuss your currency requirements and all the options available to you which include a forward contract where, for a small deposit, you can fix the rate of exchange at todays prices for a period in the future which can help clients budget and take some of the risk out the market. If you would like to find out more please call straight through to the dealing floor today on 0800 328 5884 or email us on firstname.lastname@example.org