Sterling fell quite heavily against almost all major currency pairs yesterday, and without any major economic news released to justifiably trigger such a drop.
Analysts have mainly been blaming automated trading programs for the drop, and it’s not the first time we’ve seen them hit the headlines as they have previously hit the headlines for creating a downward spiral within currency pairs. The way in which this happens is the new lows continue to trigger what are known as short positions which are essential financial bets that the currency will continue falling.
Anyone with a currency requirement involving the Pound should be aware of the negative sentiment surrounding Sterling at the moment due to the Brexit vote, with traders (and automated trading systems) ready to pounce on any sign of Sterling weakness.
Yesterday the Pound fell to its lowest level against the Kiwi in almost 11 weeks as off the back of the Sterling weakness and positive news for the New Zealand economy. With diary increasing in value lately the Kiwi has benefited as it accounts for 29% of the country’s exports.
If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.
Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on [email protected] and I will be more than happy to contact you personally to discuss the various options we have available to you.