Rishi Sunak’s presence as Prime Minister has so far steadied the Pound after one of the most volatile periods for the Pound in recent years. The end of September and beginning of October was perhaps the most volatile period of trading for the Pound since February 2020 when the seriousness of Covid became evident. Prior to this period of volatility, the vote in favour of Brexit during the summer of 2016 was perhaps the most volatile time for the Pound.
Those of our readers hoping for a stronger Pound will be pleased to see the impact of Prime Minister Sunak so far, as markets have steadied and the Pound is trading around the highest levels against the likes of the Euro and US Dollar in the past 2-months.
The upward movement for the Pound is notable after cable (GBP/USD) hit the lowest levels since the mid 80’s at the end of September when the pair traded close to parity.
Exchange rate predictions for the Pound have varied owing to the dramatic market movements recently.
Goldman Sachs, a US based investment bank have predicted that the Pound’s prospects are now better now that Sunak has been appointed UK Prime Minister. Jeremy Hunt stepping into the role of Chancellor has also steadied market perceptions of the UK’s fiscal policy after the period of turbulence and cohesiveness when former PM Liz Truss and former Chancellor Kwasi Kwarteng held the positions.
Despite Goldman Sachs raising forecasts for the Pound, the levels they expect to see the Pound trading at are lower than the current trading levels so those of our readers planning on making a Sterling currency exchange should bear this in mind.
There will be a policy update from the Bank of England on Thursday, so financial markets are likely to look to this meeting for hints of the BoE’s monetary policy moving forward. The current expectation is for 0.75 on Thursday and a tightening of monetary policy in order to curb rising inflation levels.
If you wish to discuss an upcoming currency exchange with us you can contact me (Joe) on [email protected] directly. We will be happy to offer you a quote and explain how our systems may help you save money when sending funds abroad. We also offer rate alerts to help keep you informed regarding price fluctuations.