The Pound enjoyed a welcome boost during trading yesterday morning due to Retail Sales figures being much better than the market had expected.
August had been pencilled in to be a difficult month for Sterling exchange rates however unemployment and retail sales figures this week have indeed begged to differ.
The key question we need to ask now is whether or not this is the catalyst for the Pound to gain back some of the losses it has suffered over the past month or will this merely be a flash in the pan and an opportunity for those looking to buy foreign currency in the near future.
My personal opinion is that Sterling is still in for a fairly tough run as long as the grey cloud of uncertainty hangs over the head of the U.K thanks to the referendum and we are still a long way away from getting a clear picture of what will happen regarding that, and when.
Buying €200,000 today compared to the start of the week is over £2000 cheaper so if you are looking to exchange in the near term then it may be prudent to lock in your rate and don’t give the Pound the chance to disappoint you yet again.
If you are on the other side of the market and you have foreign currency to exchange back into Sterling then although Sterling is looking shaky would still be sensible to lock in at least some of the funds whilst we are still seeing multi year highs to exchange most currencies into Sterling.
There are plenty of reasons other major currencies could weaken at any point inclusive of the U.S election for the Dollar, Italian banks and the Greek issue for the Euro and potentially further interest rate cuts for the Australian Dollar and New Zealand Dollar too.
A lot of people fall into the trap of waiting to book out the whole amount in one go but a sensible approach in current market conditions is to bank half and secure a rate with half of your money to minimise your risk and then to take a view on what the market does later down the line for the rest.
If you would like to discuss any pending exchange with one of our extremely experienced traders then feel free to get in touch with us today and we will be happy to help you.
You an reach out to us on 01494 725 353 to discuss your currency needs.
I have used Foreign currency direct on two occasions, both were stressful times for me but Daniel and staff were wonderful. Every step was explained and all queries answered fully and swiftly. I would not hesitate to recommend to anyone for an excellent service.
I decided to use this company after reading many blogs by Daniel Wright on the forecast of Sterling. He always seemed to get his predictions right and also seemed to have not only very good knowledge but a passion for the industry he is in. Daniel was not only informative but patient and gave us options on the lead up to our currency exchange.
I only have praise for the way this company make the stressful experience of Forex a simple process. Difficult to be specific but there is always the personal touch. Recently, with the BREXIT hysteria the dealers must have been very busy but Daniel Wright was always available or never failed to ring me when requested.
A totally reliable and trustworthy service. I have used them on three occasions now and my money has always come over on the agreed date at the agreed rate. Daniel Wright is a pleasure to deal with -patient, personable and professional.