Daily Archives: April 27, 2010
GBP exchange rates fall on opinion polls
The pound has weakened across the board today following on from the big gain in value yesterday. Today’s less favourable movement appears to be due to less than conclusive opinion polls that show no party has a clear lead in the run up to the Election on May 6th.
Yesterday’s strongmovement was a result of an opinion poll showing that the conservatives had taken a commanding lead. With the pound having dropped off today, it highlights the point that we here at PSF have been making for the last week or so that a hung parliament is priced in to the market around the 1.14-1.15 interbank levels v’s the Euro. Obviously other factors will influence GBP EUR and other pairs but it would appear that most speculators and investors have “priced in” a hung Parliament.
If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the contact form and I will be in touch with you shortly.
Sterling slips in morning trading… Is the spike now over?
Many clients have been asking me this morning “is the spike now once again over?”
The truth really is that nobody really knows however over the past 18 months the general pattern has been for the Pound to take a two steps forward and then follow up with a few steps back again.
As mentioned in previous posts I am quietly confident that the Pound has much better times to come this year however it may take a few knocks along the way.
This morning mortgage approvals for the U.K have come out slightly worse than expected which has led to Sterling weakness against a basket of major currencies as it suggests the housing market may not recovering as quickly as thought.
With the housing market being a major driver for the U.K economy this obviously isn’t exactly great news for the long battle to get things really moving again and has countered the numerous days of strength we have seen of late.
If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the contact form and I will be in touch with you shortly.
