Three months ago my opinion surrounding the pound started to change due to Brexit sentiment changing and the UK economy performing better than forecasters were predicting.
For the last 3 months I have been suggesting now is the time to sell foreign currency and buy pounds and for clients that took advantage of my opinion they would have received an additional 10 cents when trading US dollars and 3 cents when trading euros, compared to trading now.Feel free to read one of my articles in November by clicking here http://www.poundsterlingforecast.com/2017/11/17/is-sterling-about-to-rally-dayle-littlejohn/
This week UK economic data impressed once more, when Average Earnings and Gross Domestic Product numbers exceeded expectation. The Bank of England have been concerned that UK inflation numbers have been outpacing average earnings and this is one of the reasons why the Bank of England are reluctant to raise interest rates anytime soon.
However, stronger growth numbers and average earning numbers coupled with forecasts that inflation is going to fall back towards 2.5% throughout the year, has prompted bets being taken that the Bank of England will hike interest rates as early as May. The futures market is predicting a 50% rate hike in May and a 80% chance of a hike by November.
In regards to Brexit, this week German Chancellor Angela Merkel speaking at the Davos summit gave hope to UK businesses when she explained she wants to keep the UK as close to the EU as possible post Brexit. Furthermore, this follows trend from key EU leaders as French President Emmanuel Macron told the BBC the week before, he believes the UK can have a special trade relationship with the EU.
My opinion stays the same and for any client looking to buy sterling, I believe now is the time. If you are repatriating a foreign currency as you have sold a property abroad I would recommend that you email email@example.com and I will provide you information in regards to how I can make you as much sterling as possible. Ultimately the company I work for offers better exchange rates than what you will be able to receive from your own bank.
For people that are buying a foreign currency I would recommend emailing me with the currency pair you are converting and the timescales you are working to and I will respond with my forecast and potential upcoming events which may provide opportunity for you firstname.lastname@example.org. For example this week all eyes will turn back to US President Donald Trump and the NAFTA negotiations. Will Donald Trump announce that he will put the US out of the NAFTA agreement? If so, I expect further US dollar weakness is on the horizon.