Will Sterling continue to lose value despite the Bank of England’s efforts?

GBP AUD Moves Higher with a UK GDP Boost 

Sterling exchange rates have begun the week on the back foot despite efforts from the Bank of England to support the currency and the UK economy as whole.

After hitting an all-time low against the US Dollar two weeks ago, and an over 18-month low against the Euro at the same time, the Pound begun a fightback thanks to some backtracking by Chancellor of the Exchequer Kwasi Kwarteng after a disastrous first mini-budget.

Those of our readers hoping for a stronger Pound will also be aware that the Bank of England has waded into the UK’s inflation issues and aimed to boost the struggling Pound over the past week. Yesterday morning the Pound saw a slight boost after the Bank of England announced that it intends to step up measures to buy long term debt and protect pension funds from further strain.

There were rumours that large pension funds were at risk which applied additional pressure on the Pound two weeks ago.

Despite these efforts, and a strong recovery for the Pound against the Euro last week and also for cable (GBP/USD) to a certain extent, Sterling weakened yesterday afternoon and this downward trend has continued this morning.

Data released this morning from the Office for National Statistics (ONS) shows that UK workers have suffered an almost 3% hit to real wages owing to increasing inflation. Negative economic updates could put further pressure on the Pound as it’s under heavy focus at the moment after such a volatile few weeks of trading.

Moving forward, tomorrow’s GBP estimate (11am) could result in further market movement for the Pound so do feel free to register your interest with us if you wish to be updated regarding market movement for the Pound.

You can set up rate alerts if you wish to be updated regarding the Pounds value, and if you would like a free quote when planning on making a currency exchange please feel free to get in touch directly on [email protected]