Following yesterdays spike for GBP against EUR, the currency markets have opened slightly lower than yesterdays closig.
Mark Carneys conference yesterday introducing ‘Forward Guidance’ was initially taken poorly, as during the first 30 or so minutes we saw Sterling weakness. Carney has indicated that like the US economy, he will look to link the UK QE (Quantitative Easing) to the unemployment rate. This is seen as a risky strategey, however is has been seen as sucessful in the US. The main point to take from the conference is that we may not see an increase in Interest Rates until late 2016.
Carney will hope that the indication of extended low interest rates will encourage the banks to lend. If the banks lend then hopefully it will ease the purse strings for Brits, kick starting the economy.
Should you have a transaction planned, please feel free to drop me a line to discuss your requirements. The currency market is incredibly volatile at the moment and needs to be watched very carefully! As your eyes and ears on the markets, we will be able to help maximise your exchange.
I look forward to being of assistance to you.
01494 787 478