Making a clear forecast for sterling exchange rates id very difficult at the moment. There is a host of contradicting data in the market as the UK, US and EU are all showing sluggish economic recovery.
While there are some compelling arguments for why the pound could increase in value, for me there are more reasons why it is more likely to fall over the coming six months. Below I have outlined the main reason I feel that now is the right time to sell your sterling to buy foreign currency.
Reasons to buy foreign currency and sell sterling:
1.the Bank of England are highly unlikely to raise interest rates in the near term, despite one member voting for a hike
2. The debt reducing budget last month had a positive effect on sterling, but this is now priced into the market and unlikely to cause any further positive movement
3. Focus is likely to turn from the debt reducing aspect of the budget to the cuts and potential unemployment and reduced spending that this could lead to
4. Exports have been cited as an area of the economy that could pick up the slack, this is unlikely bearing in mind export performance over the last 2 years
5. If we do see a slow down in the economy, the MPC are willing to resume quantitative easing, in the past this caused significant sterling weakness
So if you are considering sending funds overseas, be it for personal or business reasons, please fill in the form on the right and one of the currency specialists from pound sterling forecast will be happy to run through the various options available, to safeguard your rate of exchange.