Whilst GBP continues to look like one of the best bets of the major currencies, it has fallen from the perch in the last couple of weeks. Will we climb again to those better rates in the next few days and weeks?
This week is key in that we have the UK Unemployment data. The last few Unemployment releases have seen sterling rise, will it be the same again? Markets are keenly watching Unemployment now Mark Carney and the Bank of England have linked raising interest rates to Unemployment falling to 7%. This is the key release and unless the data shows Unemployment rising I expect it to be GBP positive.
Tomorrow we also have a range of economic data in the form of Inflation data. Inflation is I feel not quite as significant as the Unemployment data so if you are selling a foreign currency to buy GBP, tomorrow may be a better day than Wednesday assuming the Unemployment news is sterling positive.
Thursday we have Retail Sales data which is also likely to be closely watched as a sign of recovery in consumer confidence and spending, a key element of this recovery.
GBPEUR, GBPUSD, GBPCAD and GBPAUD are all still at excellent levels compared to rates a few months ago. Getting the absolute top or bottom of any market is impossible so some careful preparation really is a sensible and prudent option.
All in all sterling is still at a very attractive price despite the recent dip. We did warn the excellent buying rates of the last few weeks may not last and so we have been proved right again. Other big market news will come from the US this week. The US will not quite go bust on the 17th October but the slim chance of a US default is hanging in the air.
Getting the best exchange rate can be achieved through some light preparation which we can offer assistance with. Our specialist service is designed to keep you up to date with the latest market news and offer assistance with the planning and timing of your exchanges. Please contact me Jonathan for more information on your particular situation and what may be the best course of action [email protected]