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||% Change||Difference on £200,000|
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.
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.
Simply the best FX dealer. The service was excellent and fast. The rate was the best at the time.
Prompt, efficient staff with excellent customer service skills. The whole process is simple and quick with very good rates and same day transfer into my foreign bank account.
Excellent service, easy to use one quick phone call and it’s done. Great rates
FCD were very professional and gave me an excellent rate.