Many experts, myself included, are getting asked a lot at the moment about the future value of Sterling and whether the papers are to be believed. There has been a lot of speculation around the UK economy and when the central bank, the Bank of England, will change interest rates. It has a big impact on the demand for the currency and therefore its price and I think the speculation is correct. I don’t think we will see GBPEUR up to 1.5 this year but breaking 1.25-1.27 is potentially in range. The reason why I think this is because interest rates should go up next year, well above the speed expected from the Europeans. On top of that the Europeans economy is still in trouble and having issues with inflation falling to less than half the European Central Bank wants.
When this will happen is of cause the next question and I really don’t think we will see these levels until the end of the year at all. The trend will probably be in the Pounds favour but timing a trade will of cause be key. So if you are holding foreign currency and looking to buy Pounds it may be prudent to look sooner rather than later to avoid disappointment. If you are selling Pounds and buying another then generally you should be in no rush. If you are in either situation make sure to get in contact if you would like assistance with timing your trade.
When you are in the market make sure to get in contact as here we can help time you’re your trade or at least allow you to make a more educated decision on when to press the go button. We have a number of services that can help including; SPIKE NOTIFICATIONS, RATE ALERTS and FORWARD CONTRACTS. If you have any interest in any of the above contact myself, STEVE EAKINS if you want to talk through anything in more detail.