Tomorrow we have a very important day for Sterling exchange rates as we have both the Bank of England minutes from the last interest rate decision and Governor of the Bank of England Mark Carney speaking a little later in the afternoon.
The Bank of England minutes will show how many members of the Bank of England voted in favour of or against any interest rate movements at the last interest rate decision and should any members of the monetary policy committee have now changed their view and voted in favour of a change in interst rates then we may see a nice spike for Sterling exchange rates.
An interest rate hike is generally seen as positive for the currency concerned and a cut in rates may be seen as negative. With the currency markets moving on speculation as well as fact just to the member now changing their view and opting for a hike could lead to financial markets believing interest rates for the U.K may go up early than expected therefore the Pound may gain ground off of the back of this.
At present, investors are virtually hanging off of every word that Governor of the Bank of England says and with him speaking at 12:25pm any hint or rate movements or housing market tactics could give Sterling a swift shift in strength depending on exactly what he says.
Be sure to keep in close contact with us here at Foreign Currency Direct if you do have a pending transaction to make so that we can be your eyes and ears on the market to ensure you make the most for your money.