The Pound has fallen by over 5% since mid-April after hitting the best level to buy US Dollars with Pounds since the Brexit vote back in June 2016.
Sterling has really struggled during this time owing to a number of poor economic data releases including much lower than expected GDP data for the first quarter of 2018.
Growth for the quarter came in at just 0.1% which was slowest period of growth since 2012. We have also seen a slowdown in both Manufacturing and Services data and this means that Thursday’s Bank of England monetary policy meeting will likely end with the central bank keeping interest rates on hold.
The reason we saw 1.43 on the Interbank level a few weeks ago was that it appeared as though the Bank of England were gearing up for a rate hike after UK average earnings surpassed inflation for the first time in a long time.
However, since then the chances of a rate hike on Thursday have dramatically reduced and this has caused the Pound to really suffer against the US Dollar.
The Dollar has also increased in value as the economic data in the US has improved including a very good jobs report last week which opens the door for another rate hike in the US.
Indeed, with ten year bonds hitting 3% recently there has been a huge amount of investment coming in to the world’s leading economy and this has caused GBPUSD exchange rates to go in a negative direction.
As well as the Bank of England monetary policy meeting the US will release inflation data on Thursday so if it comes in line with expectation at 2.5% then this could strengthen the Dollar even further against the Pound.
Therefore, if you’re considering buying US Dollars it may be worth getting this organised prior to Thursday.
Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.
For a free quote then contact me directly by calling 01494787478 and asking for Tom Holian when calling or email me directly with a brief description of your currency requirement and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org