Overnight saw the fall in Sterling’s value continue, GBP/EUR has fallen by a full Cent by the beginning of this afternoon and similar drops were seen on GBP/USD and GBP/AUD.
The cause of this sustained drop in Sterling’s buying power has been largely tied to the ongoing flooding in the UK.
At the start of December worrying figures for both public and private sector debt caused markets to worry with the financial crises still the in the back of the minds for many, with the Pound being hit as a result. This initial anxiety about UK debt has been compounded by the tragic and continuous flooding in the North, West and most recently even areas of the South-East in Cambridgeshire.
The every increasing price tag for the infrastructure damage attached to the flooding, now measured in the hundreds of millions, is not the only factor hurting the Pound on the markets. The knock-on effects in tertiary industries are already being felt.
In the first three weeks of each month, data on each country’s economic performance is released which has a large effect on the currency attached to that economy.
Retail sales figures for December were released overnight – expected to be a strong performer with the holiday season driving sales, ended up in severe disappointment – again the blame has been put squarely at the feet of flooding inhibiting buying activity.
This is what has caused the further loss of value on the currency markets for Sterling by a factor of whole Cents today against its major currency pairs.
Manufacturing and industrial production figures for the UK also came in poorly this morning, and with more data set to show a negative light for Sterling this month, Euro and Dollar buyers may be wise to look at moving sooner rather than later to avoid these expected falls which are becoming all too predictable given the current climate.
I strongly recommend that anyone looking to buy a foreign currency with Sterling should contact me on 01494 787 478 and ask the reception team for Joshua and we can discuss a strategy for your transfer in order to maximise your currency return.
I have never had an issue beating the rates of exchange offered elsewhere, and if you do not require currency until a later date, but are worried that rates may fall further – you can actually fix these GBP/EUR, GBP/USD or GBP/AUD rates in place for up to a year to avoid your exchange getting any more expensive.
Sterling buyers can also contact me, and we can discuss a strategy on how to ride this current move in your favour to its peak within the time period you have to complete your transfer. [email protected]