The seasonal trend of the Pound gaining throughout the month of April looks set to end this month, which is coincidentally the 13th month unlikely when the Pound is compared with the US Dollar.
The Pound tends to perform well against most major currency pairs including the Euro during April, with the trend being attributed to the new tax year and a lot of dividend payments being made around this time in GBP denominated equities.
It looks like 13th time unlikely as the Pound is trading below its starting point versus the US Dollar and the Euro when the month begun. Sterling has been coming under pressure recently after some poor Retail Sales figures and lower inflation and wage growth figures. The drop in the Pounds value and sentiment surrounding it have led the Bank of America Merrill Lynch to drop their bet on the Pound gaining in value during the month of April.
I also think that Governor of the Bank of England, Mark Carney failing to confirm the expected interest rate hike from the BoE next month has also impacted the Pound negatively, and the issues surrounding whether or not the UK will leave the EU Customs Union is also weighing on the Pounds value.
If you would like to discuss any upcoming transfers you’re planning, I think next months BoE meeting on the 10th of May is key, and feel free to get in touch to plan around this event and ask for my opinion.
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.