This evening the Federal Reserve will release their latest interest rate decision. It was 12 months ago to the day when the FED decided to hike interest rates from 0.25% to 0.5% and on the 12th month anniversary many economists believe a hike is inevitable.
If the US do decide to hike interest rates speculators should flock to the US dollar to make profit from their investments and therefore I expect GBPUSD (cable) to fall.
As for GBPEUR exchange rates, EURUSD is the most commonly traded pair and a general trend is that if one currency strengthens then the other weakens. Therefore we could see the pound make some gains against the euro if Chairlady Janet Yellen decides to hike.
Looking ahead to next year, the Supreme Court decision for the UK could put pressure on the pound and therefore exchange rates could fall. For people purchasing a foreign currency next year the safe option is to purchase upfront.
If you are buying or selling the pound in the upcoming months UK Prime Minister Theresa May’s March deadline to invoke Article50 should have a major impact on the exchange rates you will receive. Feel free to email me with the pair (GBPUSD, GBPEUR, GBPAUD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is email@example.com and I look forward to receiving your email.