Pound Sterling Forecast

Ok, I called that data may be negative yet once again the markets have surprised us and the Pound has gained this morning!

I know, it is kind of crazy but it is mainly down to the fact that further QE doesn’t look as close as had been expected – This has been an extremely negative subject for the Pound over the past few years and the fact it is a little further away again has been seen as a positive for the Pound, eroding the poor growth worries (for the time being).

That’s my take on it so far…

If you have an upcoming currency transfer to make and want to achieve the very best exchange rates along with an extremely high level of personal service, contact me directly djw@currencies.co.uk and I shall be happy to assist you.

“I can see sterling exchange rates getting somewhat weaker over the coming weeks as I think it probable that the BoE will try and devalue the currency via Quantitative Easing (QE), while the ECB will almost certainly not”

I have taken on lots of new clients recently who have registered with us to speak about their Euro purchase. They are extremely worried about the future outlook for the pound due to the weakening of the rates against the Euro.

I explained to them that the outlook is extremely bleak at present but that they do have options to give them the peace of mind with their currency exchange. You can attempt to safeguard your rate from forward contracts to utilising stop/loss and limit orders. These options would stop your currency exchange from becoming more expensive than you had budgeted for and would give you the peace of mind that you will be looking for when making a currency transfer.

I personally had a client who took advantage of the rates on the Euro 6 weeks ago by entering into one of our forward contracts for completion 3 months down the line. They were paying 250,000 Euros for their dream foreign home. They called me on Friday as it was the first time that they had looked at the exchange rates since entering the forward contract and thanked me as I had saved them around £13,000 on Friday’s exchange rates If you feel that this may suite your requirements please contact us on the form on the right hand side of this page and one of our authors will be in contact.

With the way the pound has strengthened against the US Dollar recently the above option may be ideal.

The Pound has had a better start to the day today making minor gains against the majority of major currencies, we do however have mortgage approvals data due out for the U.K  at 09:30am – this is slightly different to the release seen on Monday as it is released by the BBA (British Bankers Association).

Monday’s data however was particuarly poor and it would not surprise me to see this one follow suit and the early morning gains to be wiped out.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

The Pound made reasonable gains folowing the release of key inflationary data this morning which actually came out higher than expected.

The main way to curb high inflation is to raise interest rates and an interest rate hike is generally seen as positive for the currency concerned.

Although I don’t see an interest rate hike in the near future it does leave scope for one going forward therefore has led to Sterling strength.

Over the course of the rest of the afternoon the Pound has slipped back however as the grounded plane saga continues.

I personally feel this whole matter has been majorly damaging to the U.K economy and there will be more to come from this which in turn may be damaging for the Pound.

Apparently things are due to get back to normal shortly but there is one hell of a backlog to clear and a lot on money has been lost.

Those with CAD interest may wish to be wary as they have suggested rate hikes in the near future and that their economy has recovered at a rapid pace, at the time of writing this GBP/CAD had dropped by 1.38%

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the contact form and I will be in touch with you shortly.