Pound Sterling Forecast

Good morning readers,

Today inflation is going to be the main focus for the Pound as we see a release at 09:30am which may give further information as to how much time the BOE have to play with before an interest rate hike becomes a necessity.

It appears inflation is still slowly creeping up and although some believe it may naturally drop away over the course of 2011 it is more than likely we will need a rate hike in the coming months to start pushing it back in the right direction.

People in the U.K have become used to lower interest rates and some are still spending freely keeping inflation high and potentially setting themselves up for a fall further down the line, therefore by raising interest rates it should slow spending and also lower inflation slightly.

Obviously this may cause problems for many if this is done too early however an interest rate hike is generally seen as positive for the currency concerned as it makes it much more attractive for investors to invest money into that particular economy, so anyone waiting for Sterling rates to go up may want to keep a very close eye on comments surrounding rate hikes in the near term.

If you are buying or selling a property abroad, have business transactions to carry out or simply 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. Alternatively, if you would like assistance in finding your dream home abroad then feel free to visit www.overseaspropertysearcher.com and let one of our property experts make the hunt much easier for you.

The U.K ground to a halt over the weekend with airports being closed, motorways shut and thousands stranded all over the country as snow battered pretty much the whole country.

Our biggest airport Heathrow is as good as closed down at present and those who decided on doing their Christmas shopping on the last week before Christmas may have found it particuarly difficult to even leave their homes.

This can only be seen as negative for the Pound and indeeed the U.K economy as potentially one of the niggest weekends of the year for retailers produced next to nothing, it is reportedly costing the U.K £1Billion per day and certainly isn’t helping our economic recovery!

Personally I can see Sterling finding it very difficult to really gain much momentum during this cold snap, which is predicted to go on for some time.

If you are buying or selling a property abroad, have business transactions to carry out or simply 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. Alternatively, if you would like assistance in finding your dream home abroad then feel free to visit www.overseaspropertysearcher.com and let one of our property experts make the hunt much easier for you.

The Pound made a sharp increase following the the release of GDP figures for the U.K this morning however this merely lasted a matter of minutes before it came back down to levels seen pre decision.

It should however bring a little bit of confidence to investors in general as it does keep the U.K a little further away from a double dip recession which is better news, a much lower figure could of led to major Sterling weakness so those of you with currency to buy in the near future can sit contently for another day, however as i’m sure you are aware, rates do move rapidly and anything can happen, you are in the best position to maximise your purchase if you have a dedicated broker keeping a close eye on things for you.

I can do this along with geting you fantastic rates of exchange compared to the high street banks, potentially saving you thousands of Pounds. To make an enquiry just feel free to fill in the contact form on the right hand side of this page and I will get back to you shortly.

A quick update from me as I have plenty of clients to call and trade due to the U.K GDP figures coming out much better than expected.

Analysts had thought a figure of 0.6% would be released however the actual figure was 1.1% – a lot higher than expected and this has led to Sterling gains accross the board.

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.