GBP Exchange Rates Await Interest Rate Decision
Today at midday we have the latest UK interest rate decision where we are expecting rates to be kept on hold however what will be interesting is whether the Bank of England (BoE) will increase Quantitative Easing (QE) which has been the main talking point for many months now. QE is effectively the introduction of more money into an economy which, as it increases the supply of currency, can reduce its value and so we have seen in the past the mere mention of QE can cause Sterling exchange rates to fall and so if we see more QE today then Sterling could lose its recent gains against the Euro and other major currencies. However, the current debate is wether the BoE will actually proceed with more QE before the new Governor of the BoE Mark Carney joins the Central Bank this summer. Many people believe that although there is a strong case from more QE the Bank could well be waiting for Carney’s imminent start to decide as to whether they should proceed. If we do have another month without the injection of more QE then it may provide yet more support for Sterling and could help push exchange rates up a little further. So, the announcement at midday could be highly important for anyone with a Sterling exchange to make so make sure you stay in close contact with your currency broker here at Foreign Currency Direct plc who will be happy to keep you in touch with the latest currency news and exchange rate movement.
UK GDP Estimates Due
Later on this afternoon we have the latest Gross Domestic Product (GDP) estimates for the UK which has previously shown we avoided a recession thanks to the economy growing by 0.3% so this estimate will give us an idea as to how the economy is performing moving forward. If this quarter we are currently are in shows growth then that could also be positive news for Sterling. However, as with all economic data releases there is a chance that a negative prediction could result in Sterling weakness so again this news, which comes out just after the interest rate decision today could be crucial.
If you need to transfer money abroad and you are looking for the best exchange rates then make sure you speak with one of our dedicated account managers here at Foreign Currency Direct plc who will be more than happy to discuss your currency requrirements and the options available to you. You can call straight through to our trading floor on 01494 849752 or alternatively you can email me directly on firstname.lastname@example.org