Sterling Exchange Rate Overview
Sterling exchange rates are still holding close to some of the highest levels we have seen against the Euro for around 2 and a half years presenting clients with excellent opportunities to buy Euros. Meanwhile against the US Dollar the Pound has not had the same fortunes. The fact we are no very close to seeing the Federal Reserve Bank of America (FED) come to an end of their bond buying scheme which could lead the way to an interest hike in the US has lead to the Dollar strengthening against most the major currencies. However, the overall view remains that the UK economy is performing well and this was highlighted yesterday with an upward revision of the Gross Domestic Product (GDP) which helped Sterling spike briefly. At the moment we have unemployment falling, house prices holding steady and GDP figures rising which is giving Sterling a lot of support and is also raising questions about when the Bank of England (BoE) will chose to raise the interest rates.
Following the focus surrounding the Scottish referendum I think now all the markets attention will be on when interest rates will rise in the UK. Some analysts have suggested it may happen this year but despite the fact 2 members of the BoE voted for a rate hike I still think that interest rates wont rise until early next year. So, between now and the end of the year GBP exchange rates are likley to be heavily effected by the economic data that comes out on a monthly basis. To stay informed of the latest data and how it may impact upon the currency markets make sure you stay in close contact with this currency blog or alternatively speak with one of our experienced currency brokers who will be happy to discuss your currency requriements and the options available to you. 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 email me directly on email@example.com