The pound saw significant losses yesterday (Tuesday) as it continued its run of bad form. Sterling has now fallen against the euro for 6 continual days and is set to see its 4th month on month loss against the single currency. GBPEUR rates now sit close to a 4 MONTH LOW and only a cent away from a 18 MONTH LOW! The reason for the recent drop is down to the city betting that out of the three central banks reporting this week; The FED, The European Central bank and The Bank of England, it is the UK that is most likely to increase QE. As a result if you are selling the POUND and need to move this week I would certainly be suggesting to move sooner rather than later.
If you have more time, next week’s UK Inflation report is anther release worth avoiding. This is the time when the BOE is expected to release its “Forward Guidance” on their asset buying program otherwise referred to as Quantitative Easing (QE). Again there is a real risk for Sterling there as the general consensus is that the BOE will extend its QE program.
It really does seem that the Pound is only going in one direction at the moment, and there is little to pin hopes of any recovery onto. One thing I would highlight however is that exchange rates never move in a straight line. As a result there will be better times than others to limit your loss. However when these opportunities or SPIKES in the market do arise you have to move swiftly to take advantage. These positive movements are very difficult to forecast and anyone looking at taking advantage will need to be reactive to the movement. Here we offer SPIKE NOTIFICATIONS and RATE ALERTS to our client base, keeping them up to date. There is no cost or obligation for this service, all we ask is that you consider the price that we can offer on your exchange. However with our 13 years + experience and awards for both service and the rate of exchange I would be very surprised if we could not save you money, simply put if that was the case we would not be in business.
For more information on the market, how it could affect you, a quotation, or to register for SPIKE NOTIFICATIONS or RATE ALERTS simply email me, Steve Eakins at [email protected] or give me a call.
Look forward to hearing from you,