This Sterling report will address the factors that could have an effect on GBP exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing a number of currencies at the high and low points over the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBP/EUR2.8%€6,200
GBP/USD3.1%$8,000
GBP/CAD4.1%CAD $13,400

Pound Sterling continues to fall

Sterling has continued to fall last week as we finished the week down in the low 1.11 region, this is a 10 month low within the markets and is certainly not filling those with a GBP/EUR requirement with any confidence.

With Brexit talks now on hold until the end of August and no real big market movements expected over the coming weeks due to the holiday season, Sterling could be set to stay at these kind of lacklustre levels certainly over the next few weeks to come.

I would recommend anybody with a GBP/EUR requirement to be in contact with their account manager here as soon as possible to discuss your options.

Interest rate hike now looking more unlikely

Today we have very important inflation figures report which is due out later today, It is thought that the figures are expected to come in lower than first expected and this in turn could have a knock on effect for the interest rate decision which is due out later this week on Thursday. At last months interest rate decision meeting members voted in favour of 5-3 to keep interest rates at the current levels of 0.25%. Since this decision was made inflation levels do seem to have dropped down further and I personally feel we will not see any rate hikes for the remainder of 2017. Generally if we see an interest rate hike it is perceived as positive for the currency involved. This could be a reason as to why Sterling is performing so badly against the Euro.

Mortgage approval figures Fall

Mortgage approval figures do seem to have dropped after a slower than expected last quarter. As reported by my co worker Stephen Eakins on Friday, two of the largest estate agents in the UK have seen huge falls in profit, with Countrywide experiencing an eye watering fall in profits of 98%. This is extremely damaging for the country's largest mortgage broker and we have seen their share price fall sharply off of the back of this damaging news.

Economic data releases

This week we have a raft of economic data in the shape of inflation figures report later today along with consumer credit and net lending. On Thursday we have a massive day with BOE interest rate decision followed by minutes from their latest meeting and the Governor of the Bank of England, Mark Carney's speech. There is no change expected due to Brexit uncertainty and inflation slowing.

Thank you for reading today’s market report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail 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.