Economic sentiment in the UK appears to be holding strong of late, most recently with Inflation data impressing the markets yesterday morning. Consumer Price Index, also known as Inflation, was released at 1.4%, the highest figure recorded since October 2014. The increase has been attributed to higher petrol prices and clothing, as more typical UK weather in November this year (compared to a warmer than average November 2015) meant that retailers weren’t forced to discount winter clothing to clear their stock.
Although there was no reference to any correlation between higher inflation and the weaker Pound on this occasion, some economists are predicting that this could impact the cost of goods in February-March next year. Although the increase in Inflation is positively taking one step closer to the Bank of England’s target of 2%, Sterling weakened slightly after this data release against the Euro and US Dollar – most likely due to ongoing concerns over Inflation compared to the cost of living and wages.
Members of the House of Lord’s EU Committee have stated that Britain will require a transitional trade agreement with the EU, and that this should be planned for ahead of any formal negotiations or the triggering of Article 50. This will be welcomed by businesses and banks who have feared that an abrupt exit from the European Union could cause damaging effects to UK trade and employment reliant on trade. Theresa May has been hoping to trigger Article 50 in March 2017, and as a bespoke agreement would unlikely be agreed in the two year period following this, a transitional agreement would ensure that talks would be carried out in a less pressured atmosphere. This news resulted in the Pound strengthening against the Euro, making a €200,000 purchase £1,038 cheaper if timed at the high of the day compared to the low.
Tomorrow will see the latest Bank of England Interest Rate decision at 1pm. Although no change from the current rate of 0.25% is expected, any signs of future changes to policy during the minutes following this could cause large deviations for Sterling rates. If you have a Pound Sterling transfer to make in the near future, detailing this to your Account Manager here ahead of this release could help you to make the best possible returns.
Call our trading floor today on 01494 725 353 if you have an upcoming currency transfer that needs attention, tomorrows Bank of England update could cause volatility for Pound Sterling exchange rates. Alternatively, if you have not traded with us before and would like to register an account, please click here to sign up now.
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.