This report will examine the factors that could affect exchange rates in the coming weeks in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low yesterday. For current live exchange rates click here.
|Currency Pair||% Change||Difference on £200,000|
As we all knew a long time ago, Brexit is still casting a grey cloud over the Pound and providing us with the odd shower just to dampen down the value of it.
So far this week we have had further political uncertainty and there have even been rumours of a letter of no confidence from members of the Conservative party which would trigger a leadership contest. Brexit unfortunately will remain firmly in headlines and having read predictions from major banks ranging from parity to 1.23 against the Euro in the next year I do not honestly think anyone can put their neck on the line and make a prediction with any real certainty behind it.
What is certain is what the rate is at the moment, so if you have a large transaction to carry out involving either buying or selling the Pound then it may be prudent to lock something down, rather than roll the dice off the back of hope rather than solid economic or political data either way.
If you are in this position then it may be prudent to speak with one of our highly experienced brokers here who will be happy to speak with you and explain the various options that you have available to minimise your risk. You can call our trading floor on 01494 725353 and we will be happy to hear from you and explain this complicated market in simple terms.
Yesterday morning Sterling took yet another bashing against most major currencies as we saw the release of unemployment figures along with average earnings too.
Unemployment remained at a fairly healthy 4.3%, however average earnings figures dropped off from 2.3 to 2.2% which will not be good reading for Mark Carney and the bank of England.
Although we have plenty of people in work, wages are not in line with inflation which paints a bad picture for the economy in the coming months. Quite simply put, if wage growth (the increase in how much people are earning) is a lot lower than inflation (the increase in the costs of goods and services) then this poses a stark warning to the economy.
If people have no extra money in their pockets and the price of everything they buy is going up then they have less money to spend on other things and you then see economic data slowly get worse.
Inflation figures for the UK disappointed the markets on Tuesday as the release showed 2.9%, against the previous figure of 3.1%, which had more than likely pushed the Bank of England into their decision to raise UK interest rates. Inflation is now at a frustrating figure as far as the market is concerned as with the drop off it will reduce the chance of any further interest rate movements from the Bank of England. However, it is still high enough that it will have a negative impact on the economy, as it leaves consumers with less money to spend. Funnily enough, the biggest increase has been vegetables which are up 5.7% from 12 months ago, so be wary to make sure you shop around for your Brussel sprouts this Christmas as they have got a lot more expensive!
We have Retail Sales data due out this morning at 09:30am and this will show if the average earnings/inflation issue has started to hit the high street just yet. A further drop off may lead to the Pound rounding off the rest of the week with further losses and a good figure may lead to a little recovery.
If you have a currency exchange to carry out in the coming days, weeks or months and you would like to speak to a member of our experienced dealing team then feel free to contact our trading floor on 01494 725353 and we will be more than happy to help you.
Absolutely brilliant service, in particular special thanks to Mr Daniel Wright, who literally took care of us throughout the whole process (we are both pensioners)… we entrusted our life savings to him, and don’t regret it one little bit, Daniel was incredible.
Daniel Wright was easy to deal with over the phone and very professional. It made the International transfer very quick and easy. I would definitely use them again and recommend to friends.
Daniel Wright at Foreign Currency Direct came highly recommended to us by a friend and he and the Company have lived up to this recommendation with every transaction they have completed for us.
It’s a tad daunting and scary to change currency with a hitherto unknown company, and I was worried about it beforehand. My fears were unfounded: I can assure you that this firm is genuine and does exactly what they say they will do. Daniel Wright is a pleasure to deal.
The company gave me great confidence. A complete novice, as I am, in moving large amounts of monies around, my wonderful account manager Daniel was calm and precise in explaining the process to me. He was flexible, informative, professional, friendly. If I can recommend him to anyone then I surely will.