Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Pound Sterling rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
The Pound will be the focal currency for markets today at 2pm with the release of UK growth estimates for the last three months to June. Murmurs of small slowdowns in growth will need to be squashed here to avoid Sterling falling away from its very stable position over the last three weeks. On Wednesday it was found that UK service sector growth slowed in June. Given the arguable engine room for the UK economy is moored in services this contributed to the Pound’s slip then, and this will likely contribute to today’s overall growth findings. It doesn’t seem we’ll get help elsewhere given that growth in the UK’s manufacturing sector unexpectedly slowed during June. This is all largely priced into markets given the heavy signposts so far this week that this data is unlikely to be pro-Sterling, so any drops will likely be limited. As such short-term opportunities for Sterling buyers may present themselves.
At some point today (and I apologise for the vagueness, the Bank of England have yet to release a time) Mark Carney, the BOE Governor, will be delivering another speech.
Carney himself is arguably personally responsible for the roller-coaster on Sterling exchange rates since late June.
June 20th saw the Pound drop to a two month low following Carney’s Mannion House speech, which almost categorically denied any chance of an interest rate hike. Dismissing pushes for higher rates, adopting a markedly dovish tone.
Yet just 8 days later Carney stated that the argument for a rate hike was building. Was he pressured by the 3 members of the BOE who voted for a rate hike earlier last month? The flip flopping caused the Pound to suddenly pop up at the back-end of last week. We’ll find out today if Carney is continuing with this new positive tone. To be alert to any potential improvements I strongly recommend contacting your account manager as soon as possible, given the lack of clarity on his speech’s timing.
For more information on how future data releases could affect your Sterling requirement, call our trading floor on 01494 725 353 or email me here.
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