With the Referendum looming, today may be one of the few occasions each month where we see rates move up from positive news on the Sterling side rather than poor news overseas to make buying Euros and Dollars alike a cheaper prospect.
Average earnings and a second look at the unemployment rate for the first three months of this year will be the main news from the UK early on this morning, which is likely why the Pound is already marginally up against most of its major currency pairings.
As this is a second look, essentially a revision now that more data has arrived, markets are not expecting heavy movements from this. But average earnings will likely be the main focus for the markets.
The data has been collated from April, and due to the emergence of sunny spells the retail and tourist sectors will likely have seen a bump. This is one of the more seasonal increases for the performance of the UK economy and thus a bit more certain than what currency markets are used to dealing with – explaining why markets are already beginning to move ahead of the event.
Euro buyers however will not be the clear winners today. Later on the Dollar will likely be coming under heavy pressure following the release of the most recent minutes from the FED’S meeting this month.
This is the meeting where they already chose not to raise interest rates once more, and markets are becoming increasingly disillusioned as none of the planned four interest rate hikes this year have yet to take place.
Their most recent excuse has been due to the economic backlash of a potential British exit from the EU which is worth waiting to react to. After this, excuses about the looming election seem likely to follow. If very dovish tones are confirmed during the meeting then it’s likely GBP/USD will be recovering some of 4 cent losses recorded this month.
I strongly recommend that anyone with Euro or Dollar buying requirement should contact me today on 01494 787 478. Simply ask the reception team to be put through to 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 current levels on exchange rates ahead of the Referendum can actually be fixed ahead of time, in order to avoid the expected falls on the currency markets as the vote looms closer.
Euro and Dollar sellers can also reach out to discuss how to buy at more favourable levels as June 23rd approaches. Dollar sellers in particular may be wise to reach out sooner rather than later, as the above describes that your situation is less clear cut. email@example.com