Tuesday morning at 9.30am, the UK release their latest inflation numbers and this economic data release is set dictate sterling exchange rates for the remainder of the week.
Last month inflation fell from 2.9% to 2.6% and the pound lost value against all of the major currencies. As the pound has plummeted in value since the UK public decided to vote out of the EU, economists were under the impression inflation would continue to rise above 3%.
The reason why the pound lost value is because the Bank of England were under pressure to intervene and now that inflation has dropped the chances of interest rates rising anytime soon diminishes.
For first time readers when a central bank hints towards raising interest rates or actually decides to raise the base rate, additional investment normally flows into that currency and therefore there is more demand and the currency strengthens.
Im optimistic this week that UK inflation will remain at 2.6% or will actually improve to 2.7% or 2.8% and therefore the pound will slightly strengthen. Therefore if you are purchasing a foreign currency this week I would certainly wait until Tuesday and then make a decision there after.
How can I help you?
The currency company I work for enables me to achieve clients rates of exchange that they won’t be able to achieve by using their own bank.
Property purchases and sales are my area of expertise, therefore if you need to purchase a foreign currency or you are about to complete on a sale abroad, today is the day to get in touch to discuss your options and to get an understanding of how we can save you as much money as possible.
When purchasing currency it’s crucial to analyse both the currencies you will be trading, as your 2nd currency will also have an impact on the pair.
Feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF etc) the reason for your conversion (company invoice, buying a property) and I will email you with my forecast for the currency pair and the process of using our company firstname.lastname@example.org.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **