Sterling has been slowly declining from the recent highs of 1.2240 that w e saw a couple of weeks ago. It hit a low of 1.1970 and is now trading back at 1.2050. The fall in sterling so quickly was concerning for those looking at buying the Euro but more positive for Euro sellers. Tomorrows Inflation report by the Bank of England will be eagerly watched and will be interesting to see the effects it has on the pound.
This report, released at 10:30, will publish a detailed economic analysis and inflation projections on which the Bank’s Monetary Policy Committee bases its interest rate decisions. The fall in inflation gives the Bank of England scope to be able to hold off from raising interest rates anytime soon. For me this will hamper sterling more than help it may strengthen. As long as interest rates remain low in the UK we will see the pound linger at these levels. The Bank of England may want a weak currency to entice overseas investment but they will have to get used to the current levels. Which compared to last year is fairly strong.
The report will be key for how the pound performs for the rest of the week so if you have a transfer to make please do get in contact and we can discuss the mechanics of trading and the options available to you.
If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at [email protected]