It’s been a positive day for Sterling, which has made gains against a host of the major currencies. GBP/EUR rates have moved back above 1.14, hitting a high of 1.1462 earlier today. GBP/USD rates have also spiked towards 1.34, although the greenback has manged to find plenty of support just under this threshold.
There were also significant gains against the commodity-based currencies, with GBP/AUD, GBP/NZD & GBP/CAD rates all rising by more than a cent.
The Pound received a boost yesterday following the release of better than expected UK Construction data. This led to the argument that the first questers poor growth figures may just a blip and that more positive reading can be expected moving forward.
In truth, it is difficult to say one way or another at present. It seems as though Brexit fears continue to handicap any major advances for the Pound, which is struggling to sustain any improve it generates.
I have advocated to my clients for many months that any short-term market spikes for GBP should be seen as an opportunity. Investor confidence in the Pound is clearly fragile at best and with the UK’s economic standing post Brexit still clouded in uncertainty, we are still far more questions than answers.
Business Confidence figures remain low and whilst a run of improved economic Data could help elevate Sterling’s value to a certain degree, I am not anticipating a major spike from the current levels.
The current political hiatus’s in Italy and to some extent Spain, could certainly have a negative impact on the EUR. This in tun could inadvertently boost Sterling’s value but I don’t anticipate a run back towards 1.20 this year.
GBP/USD seems to be marooned around the current levels, with a move back to 1.40 unlikely in the short-term. Whilst the commodity-based currencies such as the AUD, NZD & CAD are reliant on global growth and therefore exposed to any slowdown in this sector (this is likely to occur should President trump push forward with his proposed trade tariffs), Brexit fears will still handicap any rises to Sterling’s value in my opinion.
Overall, it is market spikes like today’s which should eb considered by any clients with a short-term Sterling currency requirement. Holding out for longer-term sustainable gains are still are huge gamble, under the current market conditions.
If you have an upcoming Sterling 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.