Sterling has performed well once again during today’s trading session, with the cost of buying Euros and US Dollars becoming cheaper. Importantly the Pound to Euro exchange rate breached the 1.15 mark once again today, meaning that the GBP/EUR pair are trading around a 10-month high as they haven’t traded this high since June of last year.
Even though there has been some disappointing data out of the UK over the past week and a half, Sterling has managed to hold on to its recent gains which I think is a positive sign for the Pound moving forward as market sentiment has improved.
Although next months interest rate hike from the Bank of England is looking almost certain, there is of course the chance of it not happening and in this case I would expect to see the Pound fall. The chances of it not happening are slim, but those exchanging Pounds into another currency should be weary as it appears that the rate hike has been priced in already.
The next important bridge to cross regarding the Brexit will be the issue surrounding the Northern Irish border. This matter is yet to be resolved and I think it could cause movement for GBP exchange rates between now and the end of the year, with the Pound likely to climb should there be a positive breakthrough that suits all parties.
There is a quiet week ahead for the Pound so I expect the rates to continue to be driven by market sentiments, and do feel free to get in touch if you wish to be kept updated regarding the rates.
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.