This update examines factors that could affect GBP exchange rates this week. The table below shows movement for a number of currency pairs during the last week:
|Currency Pair||% Change||Difference on £200,000|
Yesterday saw the release of unemployment figures for the U.K and surprisingly the level of unemployment has dropped to 4.6%.
This gave the Pound a minor boost in early morning trading however this increase in value did end up being held back by confirmation that average earnings are indeed rising at a rate much lower than inflation.
We had received a warning from Mark Carney (Governor of the Bank of England) last week at the latest interest rate decision and this data fully backed that up.
In simple terms, this means that the general consumer’s wages are increasing at a slower pace than the price of goods and services. Should this trend continue then slowly but surely consumers will have less and less money, they will be able to purchase fewer goods and economic growth starts to stutter.
This is why this has been seen as very negative for Sterling exchange rates as should economic growth start to slip then the Pound will generally follow suit.
This morning we have the release of Retail Sales figures for the U.K and if they are anything like recent economic data releases then this is one to watch with caution.
Bearing in mind the concerns over rising inflation and a stagnant figure for wage growth we may see a slightly negative figure for Retail performance this morning which could lead to another choppy day for Sterling exchange rates.
Much like the weather for most of the week here in the U.K the Pound’s performance has been miserable and we have seen a drop in over 2 cents against the Euro, meaning a €200,000 purchase with GBP is almost £3,000 more expensive.
If you are in the position where you may need to buy any foreign currency with Sterling then it is extremely important you have an experienced and pro-active currency broker on your side.
Here at Foreign Currency Direct our average tenure for a trader is 8 years so you can relax that when you contact us you will be speaking with a broker who really knows the market inside out and can help tailor a plan to suit your requirements. Feel free to get in touch on 01494 725353 today and we will be happy to add you to our list of extremely satisfied clients.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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.
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.