Sterling exchange rate overview
Over the last 24 hours there have been some interesting movements for sterling exchange rates against a host of major currencies. We have seen sterling rise to 1.2050 against the Euro to then fall quickly down to 1.1970 and this morning we are back up at 1.2051. Against the USD sterling spiked at 1.6041 but this morning we are back down at 1.5872. We have witnessed a similar movement for GBP/CAD currently at 1.5772 and against the Aussie Dollar there has been a high to low spread of over 1 cent.
Sterling was mainly boosted yesterday morning with more positive data from the construction sector. The warmer weather contributed to orders climbing to their fastest rate in 4 and a half years. We also had comments from the British Chambers of Commerce who stated that they felt the UK economy would narrowly miss a double dip recession and they forecasted economic growth of 0.3%
This morning the PMI for the service sector came out much better than expected so sterling may continue its strength over the course of today. Tomorrow there is another big rate decision in the UK and the Bank of England will more than likely keep rates on hold but all eyes will be on the QE decision. Keep in contact with me at firstname.lastname@example.org to see how this data release could affect your currency transfer.
All good news for those of you that need to sell sterling against a range of currencies but events in other parts of the world may just hinder a sterling really pushing on. Below you can find the currency you require and make a decision on if you think the data releases will be positive or negative for your currency transfer.
ECB Interest Rate Decision
At 12.45 this morning the European Central Bank will meet to set their rate decision for April. This is a day earlier than normal but there has been mounting pressure on the ECB to cut rates. ( a cut in rates should theoretically weaken the Euro) With issues in Spain quickly becoming headline news again with strikes and data showing unemployment hitting about 23% the pressure is mounting. This is why we have seen the Euro weaken overnight against the pound and the USD.
Personally I do not think that the ECB will cut rates and that they will leave them on hold at 1% but over the coming months we could see some movement. This will mean that there will be good opportunities to buy and sell the currency. You must be in a position to capitalise on a movement in your favour as there are always peaks and troughs. Contact me at email@example.com and I can explain how you can get yourself in a position to trade automatically should a target level that you have appear in the market. With rates currently at 1.2050 after the decision if there is no rate hike then the pound could easily dip below the 1.20 level again.
US Dollar Update
As stated earlier sterling has weakened from 1.6041 down to 1.5871. This is a movement of just over 1%. The reason for the USD strength is because the Fed (equivelent of the Bank of England in the US) stated that they will try and move away from any further monetary easing (QE). We all knwo that when QE is mentioned it either strengthens or weakens a currency very quickly depending on if they are implementing it or shying away from it. I personally feel this will keep the USD strong and keep sterling below the 1.60 level and we may see a push back down to 1.55/1.56 level over the coming week or so.
With Employment change data out early this afternoon for the US you may find that the Dollar continues to strengthen against the pound and the Euro. Like I mentioned earlier if you are in a position where you can trade on a peaks or troughs you should be able to achieve a specific target level that you may have over the coming month as the USD will certainly be volatile with events that are going on around the globe. If you require buying or selling the USD contact me at firstname.lastname@example.org and we can discuss your requirement and the options that are available to you.
AUD continues to weaken
The pound has seen some excellent gains against the Aussie Dollar over the last 2 weeks. We have risen from 1.49 all the way up to 1.5479 this morning. This morning Australia posted a trade deficit of 480 million dollars which has led to analysts predicting that there could be rate cuts in Australia as fears of a dwindling economy is worrying policy makers. Interest rates were kept on hold yesterday but if over the coming months we do see Australia cut interest rates then sterling could be the big gainer. If this does occur 1.60 could be on the horizon over the next few months. Be cautious though as if you have a requirement to buy Aussie Dollars and there are positive data releases from China or Australia then teh Aussie can strengthen again very quickly. Contact me at email@example.com to discuss the outlook on the currency pair and to see if we can be more competitive than your bank or current broker.