The sell-off in the Pounds value that begun last week appears to have stabalised at least for now, as GBP exchange rates with one or two exceptions appear to be back on the charge.
Sterling has gained in value against every major currency pair today with the exception of the US Dollar, which is one of the strongest currencies around at the moment due to the high yield offered on USD deposits now that the Fed Reserve Bank in the US has begun hiking interest rates.
Sticking to the subject of yields, many economists are predicting that the Pound is set to climb against other currencies such as the Euro this year, as the Bank of England is predicted to raise interest rates next month and then there’s a chance there could be another hike later in the year.
With the European Central Bank not predicted to amend interest rates until next year the Pound could offer a much higher return than the Euro, making it a more attractive currency to hold and therefore we could see the Pound gain in value throughout the year.
Tomorrow could be a busy day for GBP exchange rates, especially against the Euro as the European Central Bank President, Mario Draghi will be speaking around lunchtime. Inflation levels within the Eurozone are low, and I think that if this subject is focused on we could see the Euro weaken and therefore see the Pound to Euro rate gain further value.
If you would like to be updated in the event of a spike for the Pound against another major currency pair, do feel free to get in touch with me to register your interest.
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.