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% ChangeDifference on £200,000
GBPEUR1.57%€3,546
GBPUSD2.57%$7000
GBPAUD2.25%AUD $7560
Industrial and manufacturing figures to kick off the day

Manufacturing data below par

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.

UK Construction PMI Release

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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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.