“Brexit” vote taking its toll on the Pound – GBP Forecast (Daniel Charles Johnson)

Pound Forecast

Sterling has been dropping in value against all major currencies since the EU referendum on 23rd June. We have also seen consistent poor UK data releases dragging Sterling value down further. The latest data releases were industrial production,manufacturing production and trade balance figures. Industrial production remained stable,but manufacturing production and trade balance data contracted. The worrying factor is that these figures are from June. We are yet to see the first post-brexit figures for July. These are due to be released in September and I think this is when we will start to see the real impact of the vote to leave the EU. Expect the pound to drop further.

The Bank of England (BOE) cut interest rates this month from the already record low of 0.5% to 0.25% and also introduced Quantitative Easing (QE) to the value of £60bn. (QE is essentially pumping money into an economy in order to stimulate growth, this generally weakens the currency in question.) Ian McCafferty a member of the Monetary Policy Committee (MPC) for the BOE has stated that if UK data continues to come in below par more monetary policy change will need to take place.

If you are selling Sterling, it would be wise to move sooner rather than later.

If you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is a key factor during such volatile times, If you have a veteran broker on board he or she can be your eyes and ears in the market to assist in making an informed decision. If you would like me to work on your trade I will be happy to help. Please inform me of  the currency pair you are trading, volume and time scale and I will provide a free individual trading strategy. I work for one of the top brokerages in the country and as such I am in a position to beat nearly every competitors rate of exchange. The authors of Pound Sterling Forecast all work at Foreign Currency Direct. We are constantly up to date with the events that move the currency markets with the majority of us writing two blogs per day. By using our brokerage you would be looking at around a 4% saving in comparison to high street banks. Please do not hesitate to get in touch by contacting me at [email protected]. Thank you for reading my blog and I look forward to being of assistance. Yo can also fill in the contact form below and I will be in touch as soon as possible.

[contact-form to=’[email protected]’ subject=’10th August PSF’][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Contact number’ type=’text’/][/contact-form]