The Pound made reasonable gains against most majors throughout March and I now have many clients in the middle of overseas property purchases asking if the strength in the Pound will continue, if previous years are to go by then there is a chance that it will.
For the past 13 years running we have seen GBP/USD rise, or Sterling increase in value against the Dollar, this has happened during financial and political instability and no matter what issues have been thrown at the U.K and indeed the Pound.
“Although there are no guaranteed patterns of where exchange rates will move during a specific time of the year, this particular trend does seem to stick out and there are underlying reasons for why it happens.”
The start of the financial year for the U.K is 6th April and what tends to happen shortly after this is a flurry of dividend payments to British shareholders in foreign companies along with numerous other incoming capital from around the world. This then creates a demand for Sterling therefore pushing up the value of the Pound.
One thing that may have held the Pound and the U.K back a little this time around is the terrible weather that we experienced throughout March, this will have held back construction and retail sales and would no doubt have had a fairly negative impact on the economy.
Over the next two days we will see the release of the first data sets from March and this will show how much of an impact the weather may have had.
I still feel the Pound is in for a good run of form as long as there are no big Brexit hiccups and as long as the Bank of England to not make a U-turn on an interest rate hike in May.
If you have a large currency exchange to make involving buying foreign currency with the Pound or selling foreign currency back and buying Pounds then it is well worth you contacting me directly. You can get in touch with me by emailing me (Daniel Wright) directly on [email protected] and I will be more than happy to contact you personally to see how I can help you. We offer highly competitive exchange rates along with help on timing your transaction and would like to think our customer service is way above and beyond elsewhere. I look forward to speaking with you.