The following Pound Sterling update discusses GBP performance, recent data releases and factors that could affect exchange rates this week. The table below shows the difference you would have received when buying £200,000 at the high compared to the low in the last two weeks.
|Currency Pair||% Change||Difference on £200,000|
Yesterday Sterling gave up most of last week’s gains as we saw losses against all major currencies, taking the rate down from 2 month highs, with the rate breaking into the 1.12’s for the first time in over a week.
One of the catalysts for Sterling’s demise was the Manufacturing PMI data which came in significantly lower than was expected. There has been a series of below expectation data releases in the UK over the last month, despite Sterling being the top performing major currency for September.
The Bank of England’s announcement last month of a UK interest rate hike in the "coming months" has helped to really boost Sterling, however there are now concerns that the peek for the Pound has been reached.
This suggests that anyone waiting for further movements as we close in on the potential rate hike in November could miss out as the highs may now be here.
The Markit Construction Purchasing Managers Index will be released at 9.30 today. PMI data is a survey taken of managers across an industry and provides insight into their confidence and performance in the near future. The last few PMI readings readings have provided support for Sterling, however any sharp changes either way could create volatility much like we saw yesterday.
If you’re looking to purchase Euros using Sterling, then the current rate looks to be a good time to capitalise. The GBP/EUR exchange rate appears to have peaked around the mid 1.14’s, hitting a barrier at the high. Whilst the rate has moved slightly below that level now, compared to this time last month you’re 5 cents better off. If you were looking to complete a £200,000 transfer the last 4 weeks have helped you gain €10,000. Get in touch with your broker here on 01494 725353 to discuss how you can make sure you’re trading on any spikes.
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