Sterling has really suffered this week and the negative movements were highlighted yesterday with the Bank of England’s interest rate decision. The 9 members of the MPC have all chosen to keep rates on hold which is a change from the 8-1 vote previously.
Ian McCafferty has changed his mind which to me is not that much of a surprise but this has certainly has a negative impact on Sterling vs Euro.
The UK Quarterly Inflation Report was also published yesterday which caused losses for Sterling compared to both Euro and US Dollar.
The Bank of England has changed both its growth and inflation forecasts and with inflation not expected to hit 2% until 2018 this means we might not see interest rates rise until then either.
The lack of an interest rate rise and the looming fears of a Brexit has caused real problems for Sterling exchange rates and whilst the uncertainty of the EU talks are ongoing I think this will weigh heavily on the Pound.
UK Average Earnings were downgraded from 3.75% to 3% for 2016 and although higher than current inflation levels this is concerning for the UK economy as any downgrade is never positive.
We end the week with US Non-Farm Payroll data this afternoon as well as US unemployment data and if you’re considering a transfer involving Sterling and US Dollars then it is worth keeping your eye out for this data release.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian email@example.com
Alternatively call me directly on 01494-725353 and ask for Tom Holian when calling.