Sterling exchange rates fell in the immediate aftermath of the Bank of England’s decision to hike interest rates yesterday afternoon.
It appears that the markets had priced in the move from the BoE as the likelihood of it happening sat at over 90% before the move was made official.
I think a combination of profit taking after the Pound had gained in the lead up to the decision along with some disappointment after the BoE suggested just another two additional hikes are likely to take place by 2020, were the reasons behind the Pound falling across the board of major currency pairs yesterday afternoon.
The Pound to New Zealand Dollar exchnage rate is still trading around the same levels as it was around the Brexit vote last year, as the Pound has recovered against the New Zealand Dollar quicker than against many other major currency pairs.
With no major data out of the UK today I’m expecting the pair to continue to be driven by sentiment as markets continue to digest the rate change yesterday. It was the first hike in over 10-years so it’s unlikely to go below the radar.
Next week there will be inflation data out of the UK on Tuesday which is likely to be watched closely as the levels has increased since the Brexit vote and the Pound lose a lot of value in a short period of time.
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.