This update will look at factors that could affect Pound Sterling exchange rates in the comings days.
The Pound has stabilised to a visible degree since the Referendum. Much of this has been down to key areas of the UK economy showing visible signs that the uncertainty expected following the Referendum vote is being weathered relatively well – nowhere is this clearer than the housing market.
Average prices have not taken a concerning turn, and buyers are still readily available – and this visible confidence in the UK economy is providing a consistent floor for the Pound.
Mortgage approvals for the UK during August are tallied and released this morning at 9:30am and they are expected to be consistent with circa 36,000 mortgages approved last month.
In fact we have already received some preliminary data concerning this on Tuesday from the British Banker’s Association stating exactly that. The official figures from the Bank of England today should be enough to confirm to markets that buying activity has not slowed for the entire financial quarter since the Referendum, and should keep some of the gains made by the Pound this week week.
These daily reports rarely tackle an in-depth analysis of speculator activity, but rarely have events on Friday afternoons become such a common feature on financial markets.
At the end of each week, traders at high street institutions, the actors who move the hundreds of millions daily that move the average exchange rates on the marketplace must choose a stable currency with which to allocate their profits into. This is for the brief period when they are away from their desks and the markets continue to move in the late evening on Friday and early morning on Monday and cannot protect their positions.
With the value of the Pound tied to an evolving political landscape, it is very low on the list of currencies which traders choose to keep their funds in heading into the weekend. Its value has regularly fallen through lack of demand, and has been exaggerated over the last few weekends since the hints given of a likely further interest rate cut in the UK economy later this year.
However, even though this has happened almost like clockwork over the past few months, this cannot be guaranteed. Friday afternoons, for anyone considering making a foreign currency purchase using Sterling, should simply be seen as a period of high risk. Foreign currency buyers may be wise to move sooner rather than later, and can contact their account manager here to for an immediate quote this morning.
For more information on how upcoming events or economic data could affect Pound exchange rates call our trading floor on 01494 725 353 or email me here.
Would not hesitate to use again, Joshua from FCD looked after us very well and we were able to get a good rate of exchange, the whole process was very quick and painless.
This was a faultless service from start to finish. Our contact, Joshua, could not have been more professional and efficient. He guided us excellently through all the stages of transferring money to the UK. Joshua even managed to get us the best exchange rate available at the time, and he did this with a pleasant manner and exceptional politeness.