So far this week we have seen further Sterling weakness against most major currencies, almost hitting a year low against the Dollar this is mainly due to Brexit uncertainty still managing to overrule any positive news we have had about the current state of the economy.
We have very little in terms of economic data due to be released for the U.K until the end of the week. It seems that investors and speculators alike are still avoiding the Pound, following on from Bank of England Governor Mark Carney sharing his concerns over Brexit after the interest rate decision last week.
If you put yourself in the shoes of a major investor and looked at the UK as a company, it would be difficult to confidently invest in that company until you knew what their business plan was. This is the stage we have reached with Brexit, the plans are still very muddled and there is a lot of confusion as to where the negotiations will head next.
Due to the uncertainty this is creating, the demand for the Pound is decreasing and therefore we are witnessing a slide in its value, making foreign currency more expensive to buy.
It is hard to see exactly when this trend may turn back around, unless we see some really positive Brexit news. If you are in the position that you may need to carry out a currency transfer in the near future, it may be sensible to consider your options whilst the rate is currently drifting away.
Summer recess for the House of Commons is still in full flow until the 4th September so we are unlikely to see any major changes until Parliament is back in full swing.
We do have UK growth figures due out on Friday morning which is the most important data release of the week, expectations are for a figure of 0.1% growth for the second quarter of 2018, which would be a slight drop off from where we have been previously.
In terms of data from the States, we have Jobless claims data out tomorrow and inflation figures due on Friday, so further positive news from a flying U.S economy could well send this pairing even lower.
If you have a Dollar exchange to carry out, or any currency pegged to the Dollar then it is well worth you getting in touch with us here at Pound Sterling Forecast. not only can we help you secure a top level of exchange but you will have one of us on your side to assist you with your timing during the buying process.
Feel free to email me using email@example.com with a description of your requirements and I will be more than happy to get back in touch with you personally to explain how I can help.