This Sterling report discusses recent events and factors that could affect GBP exchange rates this week. The table here shows the change for a number of GBP currency pairs over the last month:
|Currency Pair||% Change||Difference on £200,000|
The Pound continued to fall against the Euro and Dollar yesterday following the release of the 2017 Budget on Wednesday, while analysts digested the information and forecasts provided.
The budget painted a rather bleak outlook of the UK economy as growth forecasts were sharply revised downwards, and the pound has fallen by almost a cent since this announcement, making a €200,000 transfer nearly £1,500 more expensive.
The Resolution Foundation, a not-for-profit research organisation have suggested that the UK is heading towards the longest stretch of poor living standards in over 60 years, since records began, and that disposable incomes are likely to fall for the 19th quarter running.
However, the main topic of concern was that growth forecasts, which have been revised downwards, have put the UK economy on track to be £42 billion smaller in 2022 than was originally expected. Average UK earnings in the same year are also likely to be lower than those seen in 2008.
Philip Hammond spoke again yesterday, suggesting that any clarity surrounding Brexit would reverse these bleak forecasts, by increasing consumer confidence and in turn helping to boost growth in the economy. GDP figures were released yesterday with no change to the previous and expected figure, and therefore didn’t offer any respite for Sterling.
It is only three weeks to go until the key Brexit Deadline (14-15th December), when all 28 EU leaders will decide whether to move on to the next round of negotiations, more specifically – trade talks. As such, this period could prove to be an extremely volatile time for GBP exchange rates. I would expect information from the meetings and dinners in the lead up to this period to feed through to the press, which could result in large swings for the Pound. Your Account Manager here can help you to put a plan in place for an upcoming currency transfer, keeping you up to speed with latest developments, and helping you to time your transfer as any spikes occur.
For more information on how future data releases could affect your international transfer call our currency brokers on 01494 725 353.
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