The Pound has continued to fall against the Euro ending the week at its lowest level since October 2016.
UK Retail Sales came out better than expected yesterday but this did little to help the value of Sterling which highlights the problems currently being faced by the British economy.
Wages are not keeping up with inflation levels and this is causing a big problem for the Bank of England. In June the central bank voted 5-3 in favour of a rate hike which gave the Pound a brief lift vs the Euro but this month’s vote showed a fall to 6-2.
With inflation rising this would typically encourage a central bank to increase rates but with the cost of living as well as rising consumer debt an interest rate hike is clearly very low on the agenda for the Bank of England which is another reason why Sterling exchange rates continues to struggle.
The Brexit negotiations are under way and since they started we have seen confidence in the Pound fall and there is a clearly a lack of long term investment in the UK and until we get a bit more clarity for the talks I cannot see Sterling making any large gains.
If you have a 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 (Tom Holian) on firstname.lastname@example.org and I will endeavour to get back to you as soon as I can.