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 affecting Pound Sterling rates when buying £200,000 during the last month:

Currency Pair% ChangeDifference on £200,000
Economic data to drive Sterling currency markets?

GBP hits 11 month high against the USD

Yesterday’s release of UK Manufacturing Purchasing Managers Index figures provided a boost for the Pound, as this figure was released at 55.1 in July, higher than the 54.2 released in June. This signifies expansion in the Manufacturing sector, and in today’s economic climate this was seen as hugely positive for the UK economy and therefore Sterling.

This was due to Export orders rising at the fastest pace since April 2010, with the weaker Pound being the main driver of growth, and was the first upturn in growth for three months. Sterling rose to an 11 month high against the USD, and a near 1 week high against the EUR, and offered an excellent opportunity to sell Pounds.

This release could also have a positive impact on the UK Interest Rate decision released on Thursday – also called Super Thursday due to the volume of key data releases in the same day. As the Manufacturing sector expands, this has been filtering through to a stronger jobs market – with the latest employment data release being at the best levels seen in the last three years. The more positive the economic data to come from the various sectors in the UK, the higher the chance that the Bank of England will have the confidence to raise interest rates once again.

Another key data release which has the capacity to impact the Bank of England’s decision and GBP rates is due this morning at 9.30am with Purchasing Managers Index for the Construction sector. If this reading is better than the previous month of 54.8 then we may see further strength for the Pound, and GBP/EUR could head back up towards the 1.13 mark.

What to expect from Super Thursday

As mentioned above, tomorrow – known as Super Thursday - will be a particularly volatile day for the Pound as a whole host of data releases have the capacity to move GBP exchange rates considerably. The Bank of England will announce their latest Interest Rate decision, along with minutes and a speech from Governor Mark Carney, and the Quarterly Inflation Report will also be released. This report provides a detailed analysis of economic and inflation projections over the next two years. As such, any clients with a GBP transfer requirement, whether buying or selling, could benefit from detailing any requirements to their Account Manager here at FCD ahead of these releases starting at 12pm.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.


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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.