The pound has had one of the most impressive spikes in the last week. Ever since Mark Carney tied the raising of interest rates to Unemployment traders have been backing sterling as they anticipate an interest hike in the none too distant future. This is however at odds with what the Bank itself has said and whilst there is definitely scope for further improvements on sterling exchange rates, I do expect them to fall back at some point too. We have been here so many times in the last few years and whilst the data is definitely better, the key issues of public and government debt have not been addressed. Many are questioning the sustainability of the recent good news attributing the ‘improvements’ in the economy (house prices and consumer spending) to further debt fueled growth measures which will ultimately come back to bite…
However you view the current pick up, there is no denying the improvements on the exchange rates. GBPEUR and GBPCAD are at 1 month highs, GBPUSD is a 2 month high and GBPAUD is close to a 3 yr high. Rates on GBPNZD,GBPZAR and many others are all up at some the best levels in recent years and are significant improvements on rates of a few months ago. If you are weighing up a currency exchange and wish to be kept up to speed on where your pairing is headed so you don’t miss out, please email me on email@example.com
If you are considering selling the pound to buy a foreign currency in the coming weeks I strongly suggest you take stock of current levels to avoid disappointment. That is not to say you should enter the market right now (although that may well prove to be the best course of action) but that I would not expect the rally of late to continue too much longer. (For a proper discussion of your situation please contact me personally).
The currency markets are moving literally every second and daily swings can be well over one cent, sometimes two. This may not sound like much but on larger volumes of currency of say one or two hundred thousand pounds it makes a huge difference. Buying €250,000 with pounds last Wednesday would have cost £218340.61. That same purchase of €250,000 today would cost £212765.96, a £5500 saving!
When buying currency there are a huge range of options and different prices available which on those larger sums can save or lose you thousands. As a specialist currency broker for the UK’s largest independent brokerage we offer a specialist service to assist you in the safe, speedy transmission of money internationally at commercial exchange rates significantly better than those available through typical bank transactions.
If you would like to discuss the market and all of the options available you can speak with me Jonathan by either calling 01494 787 478 or if you prefer just email firstname.lastname@example.org and we can go from there.