The significance of a small change in exchange rates is clear, which is of particular significant for those purchasing property abroad.
The Pound has strengthened over most of the major currencies this week. Inflation figures came in above expectations at 0.1% and there were further rumours circulating of a possible interest rate hike. Personally I feel Sterling is overvalued and a interest rate hike would simply add to our current mounting export problems. I think Mark Carney, the head of the Bank of England (BOE) could well “jawbone” (talk down the value of Sterling) in order to weaken Sterling and boost the UK’s dwindling exports.
Retail sales figures are an excellent barometer as to the health of an economy. We will see the UK’s figures released this morning and the general consensus is there will be an improvement.
The currency market moves on rumour as well as fact so expect GBP/EUR to already have a rise in retail sales factored in. If there is a drop, I would expect the Pound to weaken.
If I had a Euro requirement I would be tempted to move now. Sterling is only in the position it is in predominantly due to Greece’s debt Crisis. I would be looking to avoid any volatility that the Retail Sales figures may bring. We only have to look at the recent “Super Thursday” situation to realise that when a prediction is proved wrong, the currency in question can take a hammering.
These factors along with the UK exports problem are the reason I would be looking to get a deal done and take advantage of the current, extremely favourable market conditions.
Thank you for reading my Pound Sterling forecast, I hope you found it informative. I welcome any feedback you may have and would take great pleasure in replying to you personally. Also, I am available to assist you with any foreign currency exchange requirements you may have. You can contact me directly at firstname.lastname@example.org.
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