Pound Sterling Forecast

“I can see sterling exchange rates getting somewhat weaker over the coming weeks as I think it probable that the BoE will try and devalue the currency via Quantitative Easing (QE), while the ECB will almost certainly not”

I have taken on lots of new clients recently who have registered with us to speak about their Euro purchase. They are extremely worried about the future outlook for the pound due to the weakening of the rates against the Euro.

I explained to them that the outlook is extremely bleak at present but that they do have options to give them the peace of mind with their currency exchange. You can attempt to safeguard your rate from forward contracts to utilising stop/loss and limit orders. These options would stop your currency exchange from becoming more expensive than you had budgeted for and would give you the peace of mind that you will be looking for when making a currency transfer.

I personally had a client who took advantage of the rates on the Euro 6 weeks ago by entering into one of our forward contracts for completion 3 months down the line. They were paying 250,000 Euros for their dream foreign home. They called me on Friday as it was the first time that they had looked at the exchange rates since entering the forward contract and thanked me as I had saved them around £13,000 on Friday’s exchange rates If you feel that this may suite your requirements please contact us on the form on the right hand side of this page and one of our authors will be in contact.

With the way the pound has strengthened against the US Dollar recently the above option may be ideal.