The Pound has continued to lose value across the board of major currency pairs this week, and there are a number of underlying issues which I personally think could push the Pound lower in the upcoming weeks/months.
The current UK Prime Minister, Theresa May has come under increasing pressure after a particularly problematic speech to her Conservative party earlier this week. At times she seemed low on confident and struggled with a cough throughout the speech. Even a well known prankster (Lee Nelson) got in on the act and passed the Prime Minister a fake P45, which in the UK is known is an informal way of saying you’re sacked.
Since the speech there has been speculation regarding her position, with some bookies lowering their odds that she’ll resign. This has had a negative impact on the Pounds value as political uncertainty is considered a negative for the underlying currency.
There was further bad news for the Pound this morning when it emerged that the productivity of UK workers fell in the three months to June, despite increasing numbers of hours put in by workers according to the Office for National Statistics.
Moving forward I expect speculation surrounding the PM’s position to put pressure on Sterling, and if there is talk of holding interest rates this year as opposed to hiking them as alluded to by Mark Carney, I think we could see the Pound drop even further.
If you would like to be kept updated regarding any short-term price movements between the Pound and other currency pairs, do feel free to get in touch with me.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on email@example.com and I will endeavour to get back to you as soon as I can.