The Pound still remains fragile
Today again proves how difficult it is to predict market reaction. Retail Sales were released this morning, there was predicted to be a fall from 0.8% to – 0.5%, they arrived at a terrible – 1.2%. To me this would appear to be worse news than the fall in inflation yesterday, but there was little market reaction. We have actually seen Sterling rally against the Euro during this afternoon’s trading session.
You would think this data combined with the drop in inflation would cause investors concern that a rate hike may not occur from the Bank of England (BOE) in May, but that does not seem to be the case. Do not assume however that when a rate hike occurs you will see sudden advances for the pound. It is common knowledge that a rate hike is on the cards for May but be wary of expecting a sudden surge in Sterling value. The market moves on rumour as well as fact so I would expect the rate hike to be largely factored into current levels. There is even the danger that following the rate decision during the BOE minutes we could see the pound drop in value. Hints are often given away as to monetary policy moving forward and if there is any news that further rate hikes will not happen for some time the pound could drop in value.
If you are a Euro buyer you are currently less than a cent from the highest buying levels in 11 months. Considering the fragility of the pound it may be wise to take advantage of current levels.
If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at firstname.lastname@example.org . (Daniel Johnson) Thank you for reading.