The GBPUSD exchange rates has hit the lowest level seen July 2010 as the UK continues to struggle. The Bank of England Minutes published yesterday morning has not helped Sterling which saw a fall against most major currencies by up to 1% shortly after the announcement. Bank of England Governor Mervyn King wanted the bank to increase its QE programme but was outvoted 6-3 from its current amount of £375bn. However, the general consensus is for further QE around the corner which could continue to affect the Pound.
UK Unemployment fell in the final quarter to 2.5million but again this did nothing to help strengthen the Pound. Rumours are that the BoE are deliberately trying to talk down the Pound in order for the UK to have an export led recovery. Indeed, when GBPEUR got close to parity a few years ago this helped the UK to increase GDP so this could be one of the catalysts to Sterling’s weakness.
Last night the FOMC published their own set of minutes and decided to reduce or even stop buying bonds. GBP USD rates are predicted to fall a little further from current rates so if you need to buy US Dollars then it may be worth thinking about placing a Limit Order or a Stop Loss so that you know what Sterling you need. To find out more about these contract options feel free to contact me directly Tom Holian [email protected]
Early this morning Sterling has paired back some of its losses against the Euro following some poor manufacturing data on the continent. With 1.15 now getting close again we could see Sterling get to its levels seen prior to the MPC minutes from yesterday morning.
To be kept up to date with how data releases may affect your currency transfer and you want to maximize your exchange rate compared to using your own bank contact me to find out how much you could save by using a currency broker Tom Holian [email protected]