Bank of England keep rates unchanged and halt QE for now!!
Sterling has been boosted during afternoon trade as the bank of England decided to keep the base rate of interest on hold at 0.5% and did not initiate any further monetary stimulus.
With all the jubilee celebrations over the long bank holiday weekend the UK market was closed for business. Yesterday when the UK was up and running again you would have seen that the currency markets continued to move and over the course of this week sterling exchange rates weakened by roughly 2% against a range of currencies. This decline was more than likely down to the markets pricing in further QE from the Bank of England.
The pound has now moved away from the 4 month low against the USD, trading up at 1.5570. While against the Euro we have gained from 1.2290 to 1.2398. Britain’s dominant services sector grew at an unexpectedly steady pace in May and retailers saw a solid bounce-back in sales so this too has helped the pound move away from the risk of QE in the near term.
I personally feel that this will be the average rate over the coming weeks and months for the pound against both the Euro and US Dollar. My recommendation would be that if you can trade above or below this level (depending on if you are buying or selling Euros or Dollars) then you should look at forwards if you do not need the funds imminently. To take the risk on your hard earned cash in some of the most uncertain times we have seen for a long time could be foolish. You do not want to get your fingers burnt by holding out for a cent or so more to end up losing 2 or 3.
Here at www.poundsterlingforecast.com we offer clients impartial opinions on when may be a good time to maximise your exchange and to explain all teh options that are available to you to help you minimise your risk to extremely volatile financial markets. If you are not a currency speculator and would like me to explain how we can help you make a saving on your exchange please feel free to email me at email@example.com your contact details and I will conatct you to discuss the options that are available to you. Alternativly you can call me on the number on the side of this page, it will bring you straight through to the trading floor and I will make myself available to speak with you. Just ask for Ben Amrany.