Sterling exchange rates have significantly weakened over the last couple of days from 1.2550 down to a low of 1.2373.
This morning UK manufacturing data showed that activity shrunk at its fastest pace in three years. With the UK economy already under massive stress showing that we are officially in a recession this latest data release has caused the pound to fall against every major currency.
What this does for the rates going forward is quite difficult to predict. I would however imagine that the continued bad data to come out of the UK will mean that the Bank of England may look to try and stimulate the economy through further monetary easing. When this happens the pound normally tends to weaken. It will be interesting to see if further QE outstrips the issues in the Euro zone which will determine if sterling rises or falls.
I can see the pound being range bound between 1.22-1.25 over the coming weeks in the lead up to the Greek election. However things are changing on a daily basis in the Eurozone so it would be wise to keep in contact with me here. We offer some of the best exchange rates on the market and will undercut the rate of exchange that your high street bank offers you. If you would like to email me with your currency requirement at [email protected] we can discuss all the options that are available to you from forward buying to placing limit orders in the market.