Sterling has reached new lows against many major currencies during today’s trading session, as the Pound is still coming under pressure after some disappointing data released earlier this week.
Sentiment towards the Pound is running low after the all important inflation data came out below expectations by 0.3%, and immediately after this news release the Pound dropped quite dramatically as the markets interpreted this news as negative.
The reason for this is many had hoped for an interest rate hike from the Bank of England which would likely have resulted in a boost to the Pounds value, as we’ve previously seen the Pound climb when members of the Bank of England have indicated that there is potential for a rate hike this year.
With inflation quite considerably above the Bank of England’s 2% it was looking likely that the BoE would need to act, but with inflation pressures easing this is now less likely hence the drop in the Pounds value.
Brexit talks are also taking place at the moment between Brexit Secretary David Davis along with his European counterparts, and I think that anyone with a currency requirement involving the Pound should be aware of this as there could be a sudden news release that moves the markets.
It’s worth noting that the Pound hit an 8-month low against the Euro today, so if you’re planning on making a trade between this pair it’s certainly worth getting in touch for a 2nd opinion.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.