This Pound Sterling report will discuss some of the factors that could impact exchange rates this week to help keep you up-to-date should 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 in the last 7 days. For current live exchange rates click here.

Currency Pair% ChangeDifference on £200,000
GBP/USD1.8%$4.400

Sterling sits at pivotal levels amidst serious market volatility

Volatility has continued to plague Sterling exchange rates this week as the Pound remained on it’s upward trend against the Dollar whilst at the other end struggled to recover it’s consistent losses against the Euro since the general election result. The Pound now sits at pivotal rates against its major currency counterparts, rising to 1.27 against the greenback and falling to fresh 2016 lows of 1.128 against the Euro.

It just goes to show that every currency pairing reacts in its own unique way and highlights the importance of detailing your personal currency requirements to your account manager who can list the short and/or long term variables to take into account if you are looking to maximise your returns.

Yesterday, the BoE’s Financial stability report did very little to tame the markets as Governor Mark Carney shared his concerns over the growing issue of ever rising consumer debt. The Bank of England have called the banks to increase capital by £11bn suggesting to me a downturn lays ahead. With crucial GDP figures released on Friday, feel free to get in touch beforehand to prepare for the release.

When should I sell my Sterling?

I’m sure Sterling holders will be feeling slightly hard done by as many will have been clinging their short term hopes on the Conservatives deal with the Democratic Unionist Party.

Unfortunately, however, the agreement has only just about stabilised the boat as the UK commenced Brexit talks, it seems pressure continues to rise on PM May as well as the Pound, prompting investors to question her position as well as Sterling’s value long-term.

Considering YouGov's findings of a continued loss of trust in Theresa May, analysts from Citigroup are now predicting a Conservative leadership challenge with a potential second general election within the next 12 months. With former Tory chairman Grant Shapps placing the blame entirely on May’s “world’s worst manifesto” only yesterday, is it all than inconceivable that May is ousted in the near future? Equally, UBS are the latest investment group to have revalued their forecast for GBP/EUR rates, pegging it down to below the 1.10 mark by the end of the year as political uncertainty continues to weigh and the UK’s trade balance looks likely to worsen. As such, if I was looking to sell Sterling I would at least consider hedging my bets and trading a percentage of my transfer sooner rather than later before this downward trend begins to take effect.

One cause for optimism will be the SNP’s decision to reset their plans for a second referendum, pushing back the process until mid 2018. This could take the pressure off May short term and I expect it to provide some short term support to Sterling. This could well be the last line of resistance at current levels so be sure to consider your options.

For more information on how future data releases could affect your currency exchange contact our trading floor on 01494 725 353.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.