A key talking point, which will have a huge impact on Sterling exchange rates this year, is the Bank of England’s Interest Rate Decision. Quite simply when the Bank of England raise Interest Rates this will have a positive impact on Sterling exchange rates. However is a rate hike around the corner? I don’t believe so.
It was only last month Mark Carney (Governor of the Bank of England) stated the UK wouldn’t be raising interest rate s until 2017. My reasoning behind his dovish statement is due to poor UK Inflation. Quite simply by raising Interest Rates this would encourage people to save and not spend, which would have a further detrimental impact on inflation; something the Bank of England are trying to combat. I predict Mark Carney will continue to stay dovish throughout quarter 1, 2 and 3 however towards the end of the year, if inflation has improved a hike will occur.
This week the UK has limited economic data releases. One to note is PMI construction Tuesday morning. Last month UK construction figures were poor and dented the purchasing power of sterling. If this trend continues into 2016 I expect sterling to lose ground across the board early this week.
If you have an upcoming currency transfer at some point throughout 2016 now is the time to start your preparation. Here at poundsterlingforecast we specialise in helping clients save as much money as possible when purchasing foreign properties. The standard process of buying a foreign property is to pay a deposit (approx 10%) and then pay the final balance a few months later. Within those months that’s where I come in. I can give you regular market updates and when the time is right for you we can offer you award winning exchange rates. Firstly I would recommend emailing me with your individual requirement, currency pair and timescales. I will personally respond to you with a forecast and the buying process. [email protected] Dayle Littlejohn.
If you are already using a currency provider, I would strongly recommend emailing me with the exact figures you are looking to trade and I will give you our live buying price so you can make a comparison. At that point I can show you exactly how much money you would save by using our service.
I wish you all the best in 2016!!