The pound strengthens against most major currencies!!!

Now that the dust has settled after the excellent UK GDP figures, the pound has seen significant gains of over 1% against host of major currencies. Below shows the positive movements for the pound as of 13:50 BST.

GBP-USD +1.14%            GBP-EUR +1.00%                  GBP-JPY +1.47%

GBP-AUD +1.08%          GBP-NZD + 0.80%                 GBP-ZAR +0.93 

GBP-CHF +1.49%           GBP-CAD + 1.12%                   GBP-SEK +1.16

Now GDP showed that the UK economy grew much more than anticipated in the last quarter. In fact it grew at its fastest pace in four years. This data will now raise doubts about how long the bank of England will leave interest rates at an all time low. When ever there is popular data out that may indicate an interest rate rise in the future you normally see the currency in question strengthen. This is what has happened to the pound today. The question being now is how long will the spike last?

After the vigorous budget cuts there are many analysts that still predict the UK economy will struggle to grow by the end of this year. All eyes will now turn to the banking stress tests which are due out at 5.00pm today. If you have a requirement to buy or sell any currency this release could be vital. if you wish to secure your funds before this potential volatile time just contact us via the enquiry form and we will come back to you immediately.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

Pound Sterling Strength GDP Figure for the U.K much better than expected

A quick update from me as I have plenty of clients to call and trade due to the U.K GDP figures coming out much better than expected.

Analysts had thought a figure of 0.6% would be released however the actual figure was 1.1% – a lot higher than expected and this has led to Sterling gains accross the board.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

Sterling Gains v’s EUR, DKK and USD

The Bank of England interest rate decision has given the pound a small boost against the Euro, US Dollar and Danish Krone.  Although the minutes didn’t really suggest a rate hike is likely in the future the continued stance of one member voting for a hike seems to be giving the market a little confidence in the belief that UK rates will rise this year.

Personally I think this is unlikely as I feel unemployment will reduce inflation and then there will be no need for a hike.  However in the short term this is great news as it does help the GBP, and exchange rates against some currencies have improved. 

For the pound, focus now turns to the Retail sales out tomorrow for the UK and the GDP figures on Friday.  This could cause volatility for sterling exchange rates, so if you think you may need to exchange currency fill in the form to the left and one of the PSF bloggers can keep you up to date with market movements!

Pound Sterling Forecast and update for the week so far – interesting news on Canadian and Australian Dollar

Sterling has had a reasonably positive start to the week as predicted in my previous post gaining ground against a variety of major currencies, however losing against the Canadian Dollar.

The losses against the CAD were surprising, as during the week they did raise interest rates over there by 0.25% (however this was widely expected therefore didn’t lead to much strength) but at the same time they also revised their expected GDP (economic growth forecast) down for the rest of the year.

In Australia, the wheels are now fully in motion for an election over there expected on the 21st August  – we are all aware just how important the election was for the U.K and indeed the Pound so I would imagine we should see the same volatility for the Australian Dollar over the next 6 weeks.

Should they head for a hung Parliament then we could see the AUD weaken leading up to the election or should things lead to a majority victory then the AUD may gain much more strength as political certainty is one of the main drivers for the strength of a currency.

Once again there are important economic releases for the U.K every morning this week so if you have an upcoming transaction to do then it is imperative you let one of the currency experts here at Pound Sterling Forecast know so they can keep you up to date with what is happening in the markets – Just fill in the form on the right hand side of this page and someone will contact you shortly.

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Where interbank exchange rates are referenced within the website these should only be used as a guide on the performance of a market. These rates are not indicative of our exchange rates – please contact us for a quote.