Sterling has found life tough going once again, with losses against the majority of major currencies during the early part of the trading week.
GBP/EUR rates have dropped below 1.12, hitting 1.1145 at today’s low. GBP/USD has dropped below 1.31 and despite the Pound finding some support around this threshold, it is clear that market confidence in Sterling remains minimal.
The Pound has had some false dawns of late and as such some clients have been holding out for more sustainable improvements. My opinion has remained the same for some time and that is that any client holding GBP should be taking advantage of any small improvements, rather than hold out for any longer-term sustainable gains.
The UK economy is under a huge amount of pressure and despite the Bank of England (BoE) raising interest rates my a marginal 0.25%, there has been no real change in market perception.
Reports this week have indicated that UK Prime Minster Theresa May is under further pressure, with vote of no confidence edging ever closer.
Whether or not she holds on to her position over the coming weeks, her positon as the head of the Conservative party and UK PM is becoming more unattainable by the day. This is leading to yet more uncertainty and a disjointed approach to Brexit negotiations, which is creating instability at every turn.
Whilst the markets never move simply in one direction, whilst condition’s remain as they are, I do not anticipate a major upturn for the Pound.
I would be looking to protect the current value on any short to medium range transfers and avoid the very real risk of a further downturn.
If you have an upcoming Sterling currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on email@example.com to find out all the options available to you ahead of your currency transfer.