Today we have the release of the latest Quarterly Bank of England (BoE) inflation report and this is likely to be watched closely by investors. It could also play a key role in any potential Sterling recovery, as it gives the markets an overview of any future monetary policy changes and the UK’s general economic well-being.
If the BoE’s stance is bullish then it is likely Sterling could recover some of the ground it has lost against both the EUR & USD, both of which made significant gains over the past 48 hours. However, any indication that they will increase monetary stimulus (QE), which is when they pump additional funding into the economy to help stabilise it, is likely to result in further losses for the Pound and this morning rates could suddenly look extremely attractive.
Whilst it is very difficult to predict exactly how the market will evolve, it has become clear that investor confidence in the UK economy and ultimately the Pound is extremely low. Sterling positrons remain fragile and as such I would not be prepared to gamble on an improvement, when there is no tangible evidence to support it. The silver lining for those clients holding GBP is that the Pound did find a foothold at the beginning of the month and this was not anticipated or predicted. This is further proof of how unpredictable the current markets can be and how investors are reacting to rumours as much as fact and this makes forecasting increasingly difficult.
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 UK, 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 Matthew Vassallo 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.
