In order t0 achieve the best GBP exchange rates, it is important to understand how and why the currency markets move and what factors cause this movement. Of course we are operating inside a global market, so it is impossible to know exactly what is going on everywhere but we can start to understand how investors think and what causes the markets to move.
The purpose of our blogs is to provide our readers with an insight into the currency market, so the client has gained additional knowledge before initiating any currency exchanges.
We provide various contract options all designed specifically to help our clients navigate an unpredictable market, during a time rife with global financial tensions.
In terms of current market information GBP/EUR rates have been very flat of late, ahead of incoming Bank of England (BoE) governor Mark Carney’s appointment. This has been seen as a shrewd appointment by many and only time will tell how his policies and the market reaction to these will pan out. What is clear is that the UK economy has improved since the turn of the year, although with many economic issues still rife, for example our wide trade deficit and concerns over the impact of potential rise in interest rates, we are certainly not out of the woods yet. Personally I think we will see rate hold their current levels but with further Quantitative Easing (QE) likely, a move back down towards 1.15 could be on the cards by Christmas.
GBP/USD rates have been volatile of late and despite a negative revision of yesterday’s US GDP figures, the USD has gained over half a cent against the Pound during Wednesdays trading. Whilst I still feel a move back through 1.55 is likely, those hoping for a run back towards 1.60 based on the recent upturn in UK economic data, may well be left disappointed.
If you have an upcoming currency requirement and would like to discuss the current market movement, or are interested in a rate comparison with your current provider, then please don’t hesitate to contact us on 0044 1494 787 478, or email me directly at [email protected].