There was a speech from the governor of the Bank of England, Mark Carney today in Newcastle that boosted sentiment surrounding the Pound today. Although there hasn’t been much of a boost to the Pound’s value the GBP/EUR pair is still trading above 1.13 where it appears to have support at the moment.
I think the reason for the positivity can be put down to hopes of an interest rate hike in August, which appears to be the main driver of the Pound’s value at the moment along with Brexit related updates which can be hard to both completely understand and predict. Mark Carney offered no reasons for the BoE to not raise rates in August, and he even commented on how the slowdown in the UK economy in the first half of this year can be attributed to poor weather as opposed to a cooling off of the UK economy.
This is likely to continue to effect the Pound moving forward, and I would certainly expect to see a drop in the Pounds value if the rate hike doesn’t take place as it’s no being priced into the markets.
Another potential market mover this week is the meeting UK Prime Minister, Theresa May will have behind closed doors tomorrow at her country residence. Although any announcements regarding the Brexit plans may not be announced until next week or over the weekend, this is certainty something to watch.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome 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. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on firstname.lastname@example.org and I will endeavour to get back to you as soon as I can.