This report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 for a number of currencies at the high and low points yesterday.
|Currency Pair||% Change||Difference on £200,000|
Economic surveys have been a stark contrast to the disappointing UK economic data of late, however yesterday’s UK survey data highlighted that it now starts to feed through into both surveys and data alike, painting a bleak picture for the UK economy.
Latest surveys from the European commission and from Lloyds banking group found drops in both business and consumer confidence for the month of May. This isn’t welcome news, last week UK GDP figures reported 0.2% growth for the first quarter of 2017, compared to the 0.6% growth in the last quarter of 2016. Manufacturing and construction figures have fallen for the past 3 successive months in the UK.
This has caused a stark drop in the net balance of companies reporting an improvement in business prospects from 60% percent in April to 26% in May. Personally, I think that the fear of Brexit has started to kick in as we approach the crucial negotiation period due after the General Election on the 8th June. For clients with a long term requirement this may be worth bearing in mind, as business confidence and consumer confidence shakes so too does investor confidence and therefore Sterling’s strength.
In addition with yesterday’s disappointing consumer and business surveys, consumer credit spending data also raised concerns. It seems as though the British public are still spending on credit cards, amidst growing costs for the price of everyday items and stagnant wage growth within the UK. This know raises concerns that the spending is unsustainable and could lead to problems further down the line. It will be interesting to see how the Bank of England will approach this in their next meeting on the 15th June.
I expect the rest of the week to remain dominated by politics in the UK, after the latest YouGov poll which suggested that the general election race next week could be much tighter than expected caused Sterling to drop 0.7% against the dollar and 0.5% against the Euro, highlighting just how sensitive the pound is at the minute to political news and the importance of being in contact with your broker.
Thank you for reading today’s market report, I would be happy to respond directly to any feedback you have. Feel free to e-mail me here.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.