We have seen this morning Sterling exchange rates pick up against Euro having hit a 15 month low on Friday. The positive news comes as the currency rebounds from its sudden and severe drop last week which surprised many analysts and economists. However, the improvement in the exchange rates does not mean the negative trend is over and those clients looking to buy Euros should still be aware that we could still see GBP EUR exchange rates fall further again. With the Pound under immense pressure with the UK heading towards a triple dip recession and a number of large high street names falling into administration the fate of Sterling does not look good. This coupled with the fact that confidence seems to have returned to the Eurozone and so more funds are flowing into the single currency economy it would not be surprising to see GBP EUR exchange rates fall towards the 1.10 levels.
We have a number of different contract types here to help clients manage their currency requirements, one such option is a forward contract. A forward contract allows clients to fix the rate of exchange at todays levels for a period in the future with just a small deposit which is perfect to help clients budget and also helps take some of the risk out of the volatile currency market. To find out more about our contract types click here.
UK Government to Announce New Banking Reform Bill
We have also heard from Chancellor George Osborne who has claimed that the UK’s largest banks will have to be separated into smaller organisations if they do not adhere to the new ring fence rule for risky investments. The new policy is supposed to mean the high street banks protect their customers from the risky investment sectors of the banks to help prevent another Lehman Brothers style collapse which could potentially cause disruption for millions of people. Osborne’s speech comes just hours before the Government announce a new banking reform bill which should mean that people will be able to switch bank accounts within a week. The pressure has not eased off the British banks and Osborne’s speech and the new banking reform bill later is only likely to add to that pressure. We at Foreign Currency Direct plc have been helping clients get better currency exchange rates than the banks for over 13 years and continue to do so.
So, if you need to send money abroad and are looking for the best exchange rates then make sure you speak to one of our senior currency brokers here at Foreign Currency Direct plc. You can call straight through to our trading floor for free on 0800 328 5884 or email me directly on firstname.lastname@example.org