Is the Pound about to make a major comeback? Sterling at best levels in 13 months…

Pound Continues to Benefit from Election Optimism

What could have been a very negative week has actually passed off
pretty uneventfully; in fact the pound has performed rather well. This may
actually be more a case of things being not as bad as expected rather than
genuinely ‘good’, but it is good to have slightly more positive tones
surrounding the pound. Well good if you are buying a foreign currency with
sterling. For those who are holding a foreign currency waiting for the right
time to pounce and buy pounds I foresee more challenging times ahead.

In the last few years the pound has
had a terrible run of form due to the financial crisis. With anaemic growth and
record lows on interest rates…

(if you are unsure about the impact of interest rates on a
currency’s strength please view my post here on our sister site http://www.eurorateforecast.com/2012/03/22/when-will-the-euro-strengthen-against-the-pound/)

….the UK and the pound have not
exactly set investors hearts on fire. But this may now be changing…

In the midst of the debt crisis in both America and Europe the UK
is being seen in a better light because of the coalition’s efforts to tackle the
UK’s own debt crisis. The government is largely on track to meet its own
targets and this has given the markets confidence. Yes Unemployment is still
high and there are worries ahead but it would appear to me that the UK is
standing itself in good stead for the future. Surprisingly enough the pound
gained in value towards the end of the budget and on a trade weighted basis,
the pound is the strongest it has been against a basket of currencies in 13
months. This could be the perfect time to book a forward contract to protect
your exchange rate. If you would like information about all your options please speak to me direct on jmw@currencies.co.uk – I always prioritise enquiries from this site! Let us look at the facts:

GBPEUR – Still
close to 18 month high buying Euros

GBPUSD – Nudging
closer to the 1.60 levels. Historically speaking (the last ten years) the
1.5-1.6 range is where the pound has always sat against the dollar.

GBPAUD – Currently
at the best levels we have had all year!

GBPNZD – Nudging
closer to the best rates we’ve had all year

GBPZAR – Having
reached a 6 month high against the pound, the South African Rand has weakened
and coupled with a strong pound is back 4.5% from these 6 month lows, in a
matter of weeks.

If you don’t see your currency here we can still help. Check with me on jmw@currencies.co.uk

Whilst there are certainly some challenges ahead it may be that
the worst for the UK is over. GDP figures released next week will be key to
highlighting to what extent, if any we are in recession – although we won’t
know officially until 22nd April 2012.

If you are selling a currency to buy the pound you are probably
seeing rates move against you as the pound continues to finds favour. Even with
the challenges ahead I cannot see the pound taking a major hit, particularly
when events in China are causing the Aussie, Kiwi and Rand to weaken. The
possibility of a European banking crisis appears to be under wraps for the time
being, but its presence is still concerning investors, hence the pound’s favour
as one of the more stable currencies.

If you have any currency transactions to undertake and would like
to find out more about how we can:


Book today’s levels forward for two years


Insert Stops and Limits into the market so your transfer does not
become more expensive than planned


Provide internationally recognised fully auditable
receipts for tax and proof of payment


Beat the banks and other brokers on exchange
rates


Provide information relating to your exchange
that can help make you aware of trends so you can maximise your trade, as well
as make sure your transfer does not become too expensive

Please feel free to make an enquiry on the right
hand side of the page or email me personally on jmw@currrncies.co.uk

We work for the UK’s largest independent
currency brokerage and offer a highly personal service to help guide you through the
transfer from start to finish. Whether you are totally new to the service of a
currency broker or already dealing with someone else, it is worth double
checking what you are doing and getting a second opinion. We have saved a lot of people a lot of money, and all because they made an enquiry here.

Thank you