This has been an extremely interesting week for those following Sterling exchange rates, especially during the final few trading days.
With global stock markets all over the place, the bank of England hinting at a potential interest rate rise and Brexit comments all having an impact, let alone economic data this really is a hard market to call at present.
Sterling started the week off on a low due to the worst PMI (Purchasing Managers Index) we have seen in the past 16 months and then failed to really recover too much in the days following that.
Yesterday however the tables turned and the Bank of England released their latest interest rate decision, monetary policy statement, meeting minutes and inflation report. One of the key things to be taken away from the releases was the hint towards another interest rate hike this year for the U.K. The markets began to price in a hike for the U.K and we saw a 75% chance of a hike in May from the Bank of England, with the mere speculation of a rate hike generally leading to strength for a currency the Pound instantly gained value against all major currencies.
As the afternoon progressed however, a bout of profit taking and concerns that Brexit woes may hold the BOE back from acting too soon the Pound lost ground fairly quickly. This once again shows how important it is to have your eye on the ball, or to use a proactive and helpful currency broker should you be due to carry out any large money exchanges.
Today has been similar to the performance late yesterday afternoon, further Sterling losses. Concerns over the Brexit transition period and further political uncertainty in the U.K, along with further volatility with global stocks have led to Sterling finishing the week off poorly.
The next key piece of economic data for the U.K will be inflation figures due out on Tuesday morning at 09:30am. Expectations are for inflation to have risen from 2.5% to 2.6% and should this happen then it will once again heighten the chance of an interest rate hike in the U.K and may give Sterling a slight lift once again.
Either way this is not a market to gamble on. If you have a currency exchange to carry out then make sure you are dealing with a proactive broker who will contact you should a good opportunity arise. If you would like me to help you personally with any pending exchange, for example a property purchase overseas then feel free to get in contact with me on [email protected] and I will be more than happy to get in touch to discuss the various options you have available to you.
Over 5000 people have been in touch since I started this site 7 years ago and I welcome anyone else that would appreciate my assistance both in terms of maximising your exchange rate and helping make a complicated situation a lot easier to address.