With Sterling Euro exchange rates having hit their lowest level in 11 months over the last few days and GBPUSD rates the lowest in 5 years we have seen confidence in the Pound really start to fall.
Since the start of December the UK has started to release some slightly worrying data including a downgrade of GDP for the third quarter as well as Industrial & Manufacturing data the worst in 4 years.
We are also beginning to see fears of a Brexit referendum coming later in the year and rumours are that the government are looking at creating their manifesto by next month.
When we have seen big political events such as the General Election and the Scottish referendum this has caused massive movements for Sterling Euro and Sterling vs US Dollar. Indeed, in the run up to both events we saw the uncertainty cause Sterling to fall. Therefore, as the hype of a Brexit drags on I think this could weigh heavily on Sterling.
The UK publishes Industrial and Manufacturing data later this morning and with the previous month’s figures so poor I think we could be in for more of the same causing further losses for Sterling.
Arguably the most important release of the day will come from the NIESR who will announce GDP for the last 3 months. With the ONS having downgraded GDP only recently I think we could be in for more of the same sending Sterling lower against both the Euro and the US Dollar.
With the Bank of England due to meet on Thursday the minutes are likely to confirm that interest rates will stay on hold for the time being. If they discuss falling inflation this could also have a negative impact on the Pound.
If you have a currency requirement which involves buying Euros over the next few weeks then it may be with looking at buying a Forward Contract. This allows you to fix an exchange rate and prevent further losses so you know exactly what you’re paying in Sterling to buy Euros.
If you have a currency transfer to make then contact me directly for a free quote. Tom Holian [email protected]
Alternatively call me directly on 01494-787-478 and ask for Tom Holian