The Pound received a welcome boost during Wednesday morning trading, following the release of the latest UK Unemployment Figures.
The official reading of 4.4% came out better than expected and boosted investor confidence in the flagging UK economy.
This in turn enabled to Sterling to find additional support from investors, gaining a foothold against most of the major currencies.
GBP/EUR rates spiked above 1.10 at today’s high with GBP/USD moving back through 1.29, before a slight retraction prior to the close of European market.
Despite Sterling finding some support, I don’t anticipate this positive trend to drive its value up sustainably in the short-term.
The EUR in particular has been riding the crest of a wave of late, with strong economic data and rising growth forecasts exceeding market expectations. This in turn has helped drive investor confidence in the single currency, with the EUR gaining considerable value as a result.
Whilst an argument can be made that the Pound is in such a state of disarray, that any positive developments regarding Brexit, even minor ones, could help alleviate some and re-build market confidence.
This would support any advances for Sterling but whilst there remains no evidence of this, investors are likely to remain sceptical.
In my opinion those clients holding Sterling should be viewing the improvement this week as window of opportunity, which many would not have predicted.
Whilst the current market remains extremely difficult to dissect, it essentially comes down to client’s risk adversity.
Those clients looking to sell Pounds need to ask themselves are they prepared to bet against the current market trend and hope that something positive comes out of Brexit negotiations, in order to push Sterling’s value up against its major currency counterparts.
If you have an upcoming GBP currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on firstname.lastname@example.org to find out all the options available to you ahead of your currency transfer.