So as ‘forecast’ Mark Carney caused GBP weakness, catching out all those holding on for GBP strength. The present market is not one to be complacent in and anyone who is selling GBP to buy another currency should beware it is highly unlikely the pound is going to get a big boost in the short term. That is not to say it is going to crash, the generally better than expected data all round is preventing this, but it looks like the pound will remain on the back foot.
I for one would highlight the Bank of England Minutes next week as a possible trigger for both GBP buyers and sellers. Has Mark Carney voted for more QE like his predecessor Mervyn King? The guidance issued by the Bank highlighted the rise in gilts on expectations of higher UK interest rates were misplaced. The sell off of Gilts hurt the pound as to buy Gilts you must buy GBP. There is a chance the pound could actually rise as the voting pattern for QE would change if Mark Carney doesn’t vote for QE.
All in all next Wednesday is shaping up to be a fairly interesting day. Last Thursday the pound bombed against most currencies in seconds once the data came out, only to recover within minutes. Getting the best exchange rate is achieved through timing and information. Here at we are currency traders assisting both private and corporate clients with their deals.
We can offer an extremely sharp commercial rate plus all the information on when to enter the market. For further information at no cost or obligation please contact me Jonathan directly on [email protected]