There has been huge a huge amount of uncertainty for Sterling exchange rates whilst the UK economic recovery has been faltering as of late.
This has seen GBPEUR exchange rates drop to their lowest level to buy Euros since November 2014 and GBPUSD rates hit close to their lowest level to buy US Dollars for almost 6 years.
The uncertainty of a referendum and the potential of a Brexit is putting a huge amount of pressure on Sterling with confidence also remaining very low for the Pound.
The Chancellor George Osborne recently cut the UK’s economic growth forecast from 2.4% to 2% for 2016 which caused further falls for Sterling against all major currencies.
For buying the Australian Dollar with Sterling the exchange rates are also now at their lowest levels for 12 months.
All this is great news if you have a foreign currency to buy Sterling but unfortunately if you are in the unenviable position whereby you need to exchange Sterling to buy Euros, USD or AUD we could see further falls in the run up to the EU referendum due to take place of 23rd June.
If a currency doesn’t like anything it’s uncertainty and with recent opinion polls showing the ‘Leave ‘vote getting bigger this is putting a lot of pressure on Sterling exchange rates.
Therefore, if you need to send money overseas over the next few months it may be worth buying a forward contract which allows you to secure an exchange rate for at the future which will eliminate the risk of the currency market falling further against you during this uncertain period coming up.
UK Retail Sales have fallen recently as well as production levels and there appears to be little on the horizon in terms of good news for the UK at the moment.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian firstname.lastname@example.org