The Pound has had a difficult end to the week following the announcement by the Bank of England to keep interest rates on hold at just 0.5%. The split was the same as before with MPC members Ian McCafferty and Michael Saunders both voting for an interest rate hike.
This did not come as too much of a surprise after the very low GDP figures a fortnight ago but what caused the Pound to really drop was that the UK’s growth forecast was downgraded from 1.8% to 1.4% for 2018 which had previously been predicted in February.
This downgrading is a real concern as we are still in the midst of trying to work our way though the Brexit discussions so things at least for the time being look rather uncertain for the Pound against a number of different currencies.
Indeed, when looking at the rate to buy Euros with Pounds it has fallen by over 2% in the last fortnight or the difference of £1,700 on a currency transfer of €100,000 and the Dollar has improved by as much as 5% in the last month or the difference of £4,200 on a transfer of USD$100,000.
As we go into next week we could see a lot of movement for Sterling on Tuesday as there are a number of key important data releases ahead for the UK.
We begin with UK unemployment data as well as average earnings and both have been improving in recent times. Indeed, as average earnings outpaced inflation at last month’s reading this was one of the justifications of a potential rate hike so if we see another improvement could this help the Pound fight back against the Euro and the US Dollar?
Shortly afterwards the Eurozone will announce its latest set of GDP data with expectations for 2.5% growth so anything different is likely to result in a lot of volatility for GBPEUR exchange rates.
Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.
For a free quote then contact me directly by calling 01494787478 and asking for Tom Holian when calling or email me directly with a brief description of your currency requirement and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org