Sterling exchange rates took a minor hit yesterday, following slightly worse than expected manufacturing figures released in early morning trading.
The next few days will be of key importance for where the Pound heads next, as we will start to see more economic data releases for how the U.K performed throughout September. This morning at 09:30am we have the release of construction data, along with a financial policy committee statement, both at the same time.
Tomorrow morning brings us services data (which makes up a large portion of our growth figures) which is expected to remain fairly stable, any drop off would be seen as a negative for Sterling exchange rates.
I read an interesting article on Bloomberg yesterday surrounding the Pound and many now feel that the positive movement we saw over the past week or two was indeed the interest rate hike (which still is not nailed on) being priced in for November. Should at any point the Bank of England make a U-turn on this rate hike and delay it then we may see Sterling exchange rates drop off rather sharply as the market corrects itself.
One main reason that the Bank of England have started to talk about rate hikes is due to high inflation, since they have spoken about a hike the Pound has gained value which may naturally bring inflation down as goods and services from overseas may become a little cheaper.
If inflation does naturally drop a little then there is a chance the BOE may decide to hold off on a rate hike for a few months just to let the market settle again.
We have plenty of economic data out from around the globe this week to keep an eye on too, along with a lot going on in the political world. In times such as this, if you have a currency exchange to make then it is extremely important that you use not just any currency broker, but a proactive and knowledgeable one. Online platforms are great if you are moving around wages or living expenses but if you are buying or selling a property overseas then it really is vital that you talk to someone who can help you every step of the way in what is a bit of a minefield at present.
We do not only offer up to date market information but we can also help with your exchanges too. The company I work for has been in operation for 18 years now and we help clients save money on their exchanges all day every day. If you would like to speak with me personally then feel free to email me (Daniel Wright) on [email protected] and I will be more than happy to contact you personally.