The pound is having a much better time of late against most currencies following the increased likelihood of a UK interest rate hike. If you are looking to buy or sell the pound in the future then making plans ahead of next week’s data is vital, tomorrow and Thursday will also see some important news on the rates which could move sterling rates. If you have a transfer to make and wish to get the best rates and some assistance with the planning and execution of any deals please do contact me.
Tomorrow is UK GDP (Gross Domestic Product) data which is predicted to come in at 0.3% for Q3. This is in line with the previous month but puts the UK firmly at the bottom of the growth tables for leading economies. This is not the kind of news that I feel warrants consideration of an interest rate hike. A rate hike could stifle growth even further and lead to a recession, that would not be good news for anyone!
Thursday is the latest ECB (European Central Bank) interest rate decision meeting. Markets are predicting a change in the QE (Quantitative Easing) taper of up to €30bn which would represent a change in the attitudes to monetary policy by the Eurozone central bank. The Euro could see some volatility so any clients with a GBPEUR exchange could be in for a busy day. Rates movements on 1-2 cents would not be out of the question. If you have a transfer buying or selling Euros and wish to discuss strategy for maximising your deal please speak to me Jonathan Watson by emailing firstname.lastname@example.org.
Next week is a huge week for the pound, personally I cannot see the Bank raising the interest rate. I just do not think it is a good decision to start raising mortgage payments for millions of households, jeopardising growth and unemployment in the future.
If you have a transfer to make and wish to be kept up to date with a volatile few weeks please speak to me Jonathan by emailing email@example.com. Thank you for reading and I look forward to hearing from you in the future.