The pound could now struggle to rise higher in the absence of any news positive news which would indicate future interest rate hikes are likely. The market is still digesting last week’s news where the Bank of England effectively ruled out any interest rate for the time being, sterling dropped and has been struggling against most currencies since.
Tomorrow is key news on Unemployment which could easily change the picture and give us some fresh data to pore over and provide some indications as to the likelihood of a hike in the future. The volatility of such data cannot be underestimated, only 3 weeks ago the market expected there to be an 80% chance of an interest rate hike. The quick change in fortune shows how unpredictable the currency markets can be and the importance of planning to help manage and secure the very best levels.
If you have a transfer to make in the future then understanding the market and all of your options in advance is vital to helping maximise the position. We are currently at some of the better levels to buy the pound with a foreign currency, if you are looking at any kind of transaction buying or selling then some preparation is vital.
I would not be surprised to see the pound gently drift a little lower but feel this will only be shortlived. I think sooner or later some kind of agreement over the Customs Union will come to fruition which will see the pound rising higher and present some better opportunities for clients buying a foreign currency with the pound.
If you wish to speak to one of our expert team, we would be delighted to hear from you and discuss in depth your currency requirements. We are specialist currency brokers here to assist with the planning and execution of any deals, offering insight on strategies and the very best rates of exchange.
Please feel free to contact me Jonathan Watson by emailing [email protected]
Thank you for reading and we look forward to hearing from you.