This Pound Sterling update examines factors that could affect GBP exchange rates this week, with a brief look at inflation data which has been postponed until next week. The table below shows the market movements for a number of currency pairings in the last 30 days:

Currency Pair% ChangeDifference on £200,000

Decline in the Pound helps boost economic data

Since the beginning of May we have witnessed a steady decline for the Pound, with GBP/EUR exchange rates today just shy of 6% lower than they were two months ago.

If you had €200,000 to sell during this period, you can have gained as much as £10,000 if you timed the transaction well and this goes to highlight just how important it is to have an experienced currency broker at the other end of a phone and an understanding of what is influencing exchange rates.

Our 17 years of experience in helping clients move their money internationally allows us to work with you to time your exchange at the best possible levels.

There are now signs that the decline in the Pound’s value is beginning to filter in to recent economic data, with yesterday’s UK factory output figures for the past three months highlighting the fastest growth in more than 20 years.

The weakness in the Pound has resulted in our goods becoming far cheaper to buy for foreign business and we are therefore seeing a much higher demand for our products. Yesterday’s figure could also bode well for the Pound today, as we have GDP figures for Q2 of this year being released first thing this morning.

Will GDP figures boost Sterling?

If there has been a surge in exports over the past few months then this should have begun to filter through in to the economy and we may therefore see a good spike to take advantage of for anyone selling Sterling to buy foreign currency.

If we do see a spike it may well be worth acting quickly, especially if you are working to a strict timeframe, as any Sterling gains in recent months have been incredibly short-lived. One contract we offer that can help you take advantage of such spikes is a limit order, which allows you to specify a target rate and once this is triggered, our systems will purchase your currency automatically so that you don’t miss out on any opportunities.

We were also due to have an inflation report from the Bank of England today, but this looks to have been postponed until Monday next week. This is something to keep an eye on for anyone with a Sterling requirement as inflation and interest rates have been a key driver on Sterling movement. With inflation figures starting to decline, although a positive for the economy, we could see the Pound suffer next week if the chances of an interest rate hike are quashed. I would expect some Sterling volatility as we may well hear the Bank’s plans on how to control the recent rise in the price of living.

For more information on how future data releases could affect your currency exchange, call our trading floor on 01494 725 353.


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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.