Sterling against Euro, Dollar, Australian Dollar and Canadian Dollar in recent times – What has happened and what is coming up? (Daniel Wright)

GBP/EUR

Sterling Euro exchange rates have crept up a little over the past week or so, mainly down to the possibility of an interest rate hike in the U.K increasing, the likelihood of a rate hike from the European Central Bank decreasing further and the political issues over in Spain.

This week will be key for anyone with an interest in buying or selling Euros, we have the Bank of England interest rate decision due out on Thursday at 12:00pm which will be of great importance to the Pound.

As it stands expectations are for a small interest rate hike of 0.25% which a recent Reuters polls has currently placed an 84% chance of this happening.

Tomorrow we have the release of both inflation and growth figures for the Eurozone during the course of the morning, which will be key as to how the Euro performs in trading tomorrow.

GBP/USD

Sterling Dollar exchange rates have remained fairly flat in recent weeks, it is as if the rate is poised to make a move either way. With the Trump factor still being a potential banana skin for the Dollar, those looking to sell Dollars in the near future may wish to tread carefully as there are a lot of political issues still hanging over the head of the Dollar at the moment.

Once again, we do have the Bank of England interest rate decision on Thursday which will be important for anyone buying or selling Dollars against the pound, should the Bank of England make a move and raise interest rates then this move will pull U.K interest rates slightly closer to that of the U.S and you would expect a slight increase in the value of Sterling against the Dollar.

GBP/AUD

Sterling exchange rates have had a good time against the Australian Dollar recently, with lower than expected inflation over in Australia and better than expected growth figures for the U.K leading the reasons why this rate has broken the 1.70 barrier.

Overnight tonight we have Australian business confidence and Chinese manufacturing data which will impact on the Australian Dollar’s value but like many others the most notable release this week will be on Sterling’s side with the Bank of England interest rate decision.

If we do see a hike from the Bank of England then U.K interest rates will move slightly closer to

GBP/CAD

Sterling exchange rates are close to 1.70 against the Canadian Dollar, following a recent climb by the Pound. They had been below 1.60 only a matter of weeks ago, shortly after an interest rate hike in Canada. We do have a flurry of unemployment, import and export data due out from Canada on Friday but for anyone in the position where they may to move Canadian Dollars to or from the Pound personally I feel Thursday will be the most volatile day.

All in all as you can gather Thursday will be the key day this week for Sterling exchange rates, with the markets currently sat at expectation of 84% for an interest rate hike we may already have seen a lot of Sterling strength priced into the market, a surprise movement to keep rates on hold could lead to the Pound dropping off fairly rapidly and a hike should give the Pound a small boost, although many major analysts have also made it clear they feel a hike would be too early and a bad move, so there is still the chance that a 0.25% hike could be seen as negative too.

If you are in the position where you may need to buy or sell foreign currency in the coming days, weeks or months then it is well worth getting in touch with me directly. Not only can I save you money over other brokerages and banks, but with years and years of experience in currency exchange I will also be extremely helpful to you in giving you information to make the right decision on timing your transfer too.

If you feel that I may be helpful to you then you are more than welcome to email me for a quote and for further information. You can email me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to get in touch with you personally to see how I can help.