The Pound’s Fall Continues (Daniel Johnson)

Sterling continues to fall against the majority of major currency pairings. The key factor in the weakening of the Pound is the EU referendum. Current polls now suggest it is 50/50 whether the UK will stay or leave. This kind of uncertainty is taking it’s toll on Sterling. If the UK were to leave I would expect Sterling to fall by upward of 30 cents against the New Zealand Dollar. Where as if the UK were to remain in I would expect a 20 cent rise in Sterling as a maximum. I feel the risk far out ways the reward.

Keep a close eye on the Reserve Bank of New Zealand’s Interest rate decision on 27th April. They have already made a rate cut in order to weaken the currency and have indicated there may be more to follow. This maybe Sterling’s only chance of a significant rally against NZD.

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