Sterling is a very bad spot at present. I find it particularly annoying considering how strong the UK economy was before Cameron’s gambit to hold a referendum. Politicians with their own agendas has caused this monumental fall for the pound. May and Boris are also responsible for the current situation.
Inflation is now a major concern, at one point it was as high as 2.9%. The latest data showed a drop to 2.6% which caused the pound to fall in value. I am of the opinion this is a good thing as the closer inflation is to average wage growth (1.8%) the better it is for the economy. If inflation is not in line with wage growth people may stop purchasing products and services that have become more expensive. this could cause the economy to slow and a recession could be on the cards. The reason the pound fell in value however was because the chances of an interest hike dropped considerably when inflation fell. The Bank of England were considering a rate hike if inflation continued to rise.
This is why Thursday’s inflation report is so important and coupled with the Monetary Policy Committee (MPC) vote expect volatility on GBP/EUR. If there is a change in the number of MPC members voting for a rtae hike expect significant movement on the exchange. If you have a trade to perform short term it is vital to be in touch with an experienced broker.If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at firstname.lastname@example.org . (Daniel Johnson) Thank you for reading.