This GBP report looks at factors that could affect Pound Sterling exchange rates in the short-term. The table below shows the difference you would have received when buying £200,000 at the high compared to the low during the last 3 months:
|Currency Pair||% Change||Difference on £200,000|
Yesterday saw the end of consistent losses for the Pound since the start of the month as a combination of employment figures and a fall in demand for the US Dollar (courtesy of President Trump) helped revive Sterling to some extent as it made slight gains against its currency counterparts, rising by 0.5% and 0.7% against the Euro and the Dollar respectively.
These are only marginal gains but I’m sure in the scheme of things, Sterling holders might take a little bit of confidence from the fact that the Pound has once again found support in the low 1.10’s against the Euro, as has consistently been the trend since the Brexit vote.
The question is, is there enough momentum behind the Pound at the moment for it to remain above the 1.10 threshold and potentially rebound towards 1.15?
Demand for HSBC currency accounts jumped by 23% in June which suggests the popular opinion is there is still far more downward pressure facing Sterling, and a move below 1.10 is more likely.
As such if you are looking to buy foreign currency with Sterling, it may pay to contact us to make the most of our bank beating exchange rates and capitalise on this brief respite for the Pound before unfavourable market factors begin to take hold.
Speaking of unfavourable market factors, Brexit negotiations have been making the headlines once again this week and very little of it bodes well for the Pound’s value going forward. Divisions inside the government seem to be emerging once more as the former aid to the Brexit Secretary James Chapman yesterday called for MP’s to unite and fight to stop this “catastrophic” Brexit.
Furthermore, Debuty Governor of the Bank of England Sam Woods, highlighted the financial risks UK PLC will be faced with should the UK surrender its access to the European single market without giving companies enough time to adapt their offering. Taking into account reports from major UK banks and insurers, Woods envisages an exodus of multi-nationals based in the UK as a result of added costs and business complexities. If this proves true, this will sap a huge amount of investor confidence away from the Pound and I expect Sterling’s value to be anchored as a result.
This morning’s Trade Balance and manufacturing release may well reflect these concerns and I wouldn’t be surprised to see the markets move against the Pound once more as a result.
For further updates on how future data releases could affect your currency transfer call our team of currency brokers on 01494 725 353.
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