Sterling has been rising against most currencies as the progress on Brexit and the possibility of interest rate hikes in May and perhaps further ahead help to boost confidence. I do feel there is a risk now however that in the absence of any fresh new exciting news to help boost further these positive sentiments, sterling could drop.
The currency markets do not always reflect reality and often we can see the market rising and falling quickly as confidence rises and falls. At the moment confidence is quite high for the pound but it is based on the future good news on Brexit and also interest rates. Any signs that the UK economy is not performing quite as well as is hoped, or that Brexit is hitting fresh snags would easily see this current optimism evaporate.
The main news to move the rates in April is economic data as we have no scheduled Bank of England meetings, nor any EU Summits from which we would expect a major shift in sentiment. Therefore we should closely monitor the key pieces of economic news from the UK which are next Wednesday with Industrial and Manufacturing data. Then the following week is UK Inflation data on the 17th and Unemployment data the 18th, two key pieces of information the Bank of England are monitoring to determine whether or not to raise interest rates.
If you have a transaction to make buying or selling the pound the coming weeks will be very important and whilst there is a chance the pound will rise higher, there is also a real possibility it could fall if the news doesn’t quite meet up to the high expectations which have been set already.
For more information at no cost or obligation on the best way forward for any sterling transfers please contact me Jonathan by emailing email@example.com. Thank you for reading and I look forward to hearing from you.