Sterling managed to curb any further heavy losses on Friday but despite it stabilizing, there’s no doubt it was overall a disappointing week for the Pound. GBP/USD has dropped with the pair now trading around 1.3550.
It is likely that the markets have now factored in Thursday’s Bank of England (BoE) interest rate decision, with the prospect of a rate hike seemingly eliminated from investors thought process.
It has been widely anticipated that the BoE would be raising interest rates by 0.25% at their upcoming policy meeting but a run of poor UK economic data, particularly some very disappointing Gross Domestic Product (GDP) figures, have now changed the markets sentiment completely.
It will be interesting to BoE governor Mark Carney’s comments during Thursday’s press conference as he is likely to give us a deeper insight into the central banks current thought process. It may well be that he dampens talk of a rate hike for the rest of this year, in which case it will be very difficult for Sterling to make any significant impact over the subsequent days.
Whilst those clients holding Sterling will be disappointed by last week’s drop, there is certainly no guarantee of a recovery in the short-term against the USD.
If you have an upcoming GBP currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.