Sterling Exchange Rate Strength

Inflation figures were announced this morning and have shown a much better than expected improvement with Consumer Price Index figures coming in at 1.9% compared to last months 1.5%. Inflation has been one of the data sets that has caused much debate recently with the European Central Bank (ECB) cutting interest rates in order to try and halt the dramatic fall in inflation in the Eurozone while in the UK inflation has started to show signs of falling so today’s announcement is good news for the UK economy and for the Bank of England as it is another indicator of strength for the UK economy. In fact high inflation often leads to an increase in interest rates so this mornings announcement is likely to increase the talk and likelihood of an interest rate hike which could even come this year. Should this be the case we could see Sterling exchange rates strengthen even further against most of the major currencies. In fact the Pound has already pushed up following the positive inflation announcement and we are getting close to 1.26 against the Euro again and close to 1.7150 against the Dollar on the interbank levels.

So, with some excellent opportunities to buy currency it is worth speaking with one of the senior currency brokers here at Foreign Currency Direct plc who will be able to discuss your currency requirements, the options available to you and the market outlook in more detail. You can call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively you can email me directly on trh@currencies.co.uk