The pound had been one of the worst performing currencies of 2013 until a few weeks ago when it bounced back from the very worst levels. The answer to the question of is the worst really over will be evidenced next week in the form of GDP data. Gross Domestic Product is a measure of the output or growth in the economy and is a key factor in determining the strength or weakness of sterling.
What strategy should I adopt for buying or selling the pound?
If you are selling a foreign currency to buy pounds and you are keen to take a risk it may be worth waiting until next Thursday as there is an outside chance you could see much better levels by 2 or 3 cents. If you are not keen to risk then I would tee things up a bit sooner as it is probable the pound may become more expensive.
The consensus among commentators seems to be that the UK has avoided the triple dip recession. This would mean that it is likely the pound will strengthen next Thursday. However because this expectation is quite high, if for any reason the data is bad we could see a big fall for the pound. Markets often move ahead of the event too, so it can be argued the pound is stronger lately due to this expectation. It is also true the pound is stronger due to events in Cyprus, money has moved out of Europe and despite all the economic woes for sterling, found its way to the relative safe haven of the UK.
If you are selling pounds to buy another currency then it may be wise to see how the data comes out next Thursday. This is because the pound may strengthen by a cent or so against most currencies. It is impossible to say exactly what will happen so the best way to ensure you don’t lose out unnecessarily is to register an interest with me so I can keep an eye on the movements for you. Rates can move up to one or two cents per day and on big volumes of currency this can become very costly.
If you are weighing up whether or not to sell or buy pounds and hoping for slightly more on the rate, then the outcome of this decision next week is key.
The authors of site are specialist currency providers who can offer much better rates than the banks and other sources. We also offer assistance with the timing of your exchanges and providing forecasts. Ultimately no one can tell you exactly what will happen, but our expert knowledge of what drives rates and guidance on the processes involved will ensure you make an informed decision.
I look forward to hearing from you and personally assisting you, thank you.