The Pound has had a mixed bag in terms of performance against other majors of late and many clients I speak to are wondering just where the markets may head next… It is such a hard one to call at present as we have so much gonig on worldwide.
The intro of QE3 for the States and the mention of no rise in interest rates until at least mid 2015 coupled with the Euro gaining a huge amount of confidence has led to a huge amount of weakness for the Dollar – Last week in fact was the worst the Dollar has performed in one single week for 8 months!
The riskier currencies have also made a fight back thanks to global confidence being higher, apart from the South African Rand that is, which due to interest rate cuts and the major mining and political problems over there have led to a battering for the strength of ZAR in recent weeks.
Personally I think at some point once again confidence in European problems will drop like a stone and we will see a big reversal, the problem is this may be weeks or it may be months so if you have a pending property purchase to make in Europe it may be prudent to look at getting serious with booking your rate of exchange by either hedging your bets and securing half of the currency you need or by locking in to a forward contract.
We have the Bank Of England minutes due out on Wednesday morning which could be the kick start to further Sterling losses so that is one release to be extremely wary of.
If you have an upcoming currency transfer involving any major currency and would like to discus your options with me personally I will be more than happy to speak with you directly, just feel free to email me firstname.lastname@example.org with some details and a contact number and I shall get in touch, with years of market knowledge, awards for our exchange rates and indeed our customer service it could be an email that saves you thousands of Pounds.