After hitting close to a 9 month high to buy Euros with Pounds on Thursday afternoon the Pound has dropped dramatically during Friday’s trading session.
On Thursday the Bank of England raised their growth forecasts for the UK for both this year and next and suggested that an interest rate hike may be coming sooner than many expect.
Indeed, some sources believe there is a 75% chance of an interest rate hike coming by as early as May. When the Bank of England hiked rates towards the end of last year this was a direct attempt to control rising inflation which was trading above 3%.
With the latest Consumer Price Index figures due out on Tuesday the latest expectation is for 2.9% which is still way above the government target and another reason to bring a rate hike forward which in theory would help strengthen sterling against the Euro.
However, politically the Pound has come under pressure after EU Chief Negotiator Michel Barnier suggested that the transitional period which the UK will enter between March 2019 and December 2020 is still far from being sorted and this caused the Pound to fall against the single currency.
Barnier’s comments have caused the Pound to fall against all major currencies including vs the Euro with a fall of over 1% or the difference of £1,000 on a currency transfer of £100,000 highlighting the importance of using a currency broker who will be able to set Limit Orders for you which allows you to buy at pre-determined rates.
If you have a need to make a currency transfer in the near future then feel free to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency compared to your bank or another currency broker.
Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on email@example.com and I will respond to you as soon as I can.