The Pound has come under pressure once again today, not just compared to the Euro but across the board of major currencies. Those planning on making a large transfer from Pounds into Euros are seeing the cost of Euros become more expensive on almost a daily basis at the moment, and there are a number of reasons for this.
The financial markets had previously been pricing in an interest rate hike from the Bank of England, up to 0.75% which would be the highest rate since the UK exited the global recession almost 10-years ago. This rate hike is now looking a lot less likely after some disappointing GDP figures released lat week showed a slowdown in the UK economy. According to the preliminary GDP figures, the UK economy has slowed to its slowest level in 5-years and although much of this is being attributed to the terrible weather in the first quarter of this year.
At the same time Manufacturing data released this morning showed that the sector has dropped to a 17-month low. With the UK economy appearing to slowdown the chances of a rate hike have slipped and now Lloyd’s Bank are only expecting a 20% chance of the hike actually happening this month.
Tomorrow there is Construction data to be released and then on Thursday there will be Services data released, all out of the UK. Further weak data in my opinion is highly likely to result in a further sell-off of the Pound, so do feel free to register your interest with me if you would like to be notified should there be a major spike do feel free to get in touch.
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.