Although Sterling has been performing considerably well of late, rising to its highest point in a month at the end of last week, it fell against its major counterparts throughout the course of yesterday afternoon. This was following from poorer than expected UK Manufacturing data released. The previous figure was recorded at 54.6 and fell to 54.2 in March, which although isn’t a huge fall, was a long way off the expectation 55.1 and provided concerns into a slowing down of the UK economy.
You can view live exchange rates here.
Another factor towards the weakening Pound could also be due to the recent disagreements between the UK, EU and Spain regarding Gibraltar. The row stemmed from Gibraltar not being mentioned in the official Article 50 letter last Wednesday, causing the EU to publish draft guidelines stating that all decisions regarding Gibraltar would need to be run past Spain. Theresa May laughed off questions from reporters yesterday who hinted towards a potential war with Spain, and she confirmed that, as part of the negotiation process, they would be speaking with all EU countries to make sure that the best possible deal is reached for all involved.
This morning sees the release of Construction data for the UK at 9.30am, and is expected to show a minor dip. If this data follows the weaker manufacturing data yesterday we could see further losses for Sterling against the Euro, potentially pushing rates back between 1.15-1.16.
Looking at the longer term forecasts for Sterling, many analysts from firms such as Barclays, Citi and Nomura are predicting a positive year ahead if the economy maintains its resilience and negotiations with the EU go to plan. However with so much emphasis being put on these negotiations, putting a plan in place with your Account Manager here at FCD is crucial for us to be able to update you on any spikes in the market as they occur.
Call our trading floor on 01494 725 353 or email me here if you'd like to talk to one of our team about an upcoming currency transfer.
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They always answer the phone straight away, they are very helpful and always call back. They have the best rates.
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Efficient service as always. Excellent customer service, with dedicated dealers who get to know you. Would not hesitate to recommend.