Yesterday the British manufacturing industry continued to show growth as the manufacturing numbers grew by 3.5% and the industrial production numbers grew by 2.5% in November. Reports by Pantheon Macroeconomics are suggesting that industrial production numbers have increased 8 months in a row which is good news for the UK economy.
However i’m not surprised that the British manufacturing industry continues to impress as the steep fall in the pounds value has led investors overseas taking interest in UK products as they are considerably cheaper than 18 months ago. In fact the UK economy has actually continued to grind out fairly positive data since the UK voted out of the EU. Yearly growth numbers for 2017 were released at 1.8% and the IMF and Confederation of British industry were prediciting between 1.2% and 1.5%
At present the pound is performing considerably well against all of the G10 currencies and in particular the US dollar. But the question all of my clients want to know is what’s to come?
The Bank of England raised interest rates towards the back end of last year and rumors emerged that an interest rate hike could occur towards the summer months. However with the pound now remaining stable I expect inflation to remain around 3% or potentially fall back towards 2.5% which would therefore mean an interest rate hike is unlikely. However commentary from the Bank of England over the upcoming months will continue to impact sterling exchange rates.
Regular readers will be aware that the ongoing Brexit negotiations will continue to drive sterling exchange rates. Stories are released daily therefore if you are exposed to a sterling currency transfer and would like to be kept up to date with the top stories fell free to email me firstname.lastname@example.org and I will filter the news for you and only provide information that is impacting your exchange rate.
It’s also important to study the other currency that you will be converting. Feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF etc) the reason for your conversion (company invoice, buying a property) and I will email you with my forecast for the currency pair and the process of using our company email@example.com.
I look forward to speaking with you soon.