Yesterday we saw the Pound to Euro exchange rate hit its lowest level in the past 5-weeks.
The feel good factor surrounding the Pound appears to have fizzled out and the Pound is now coming under pressure pretty much across the board. There had been a bullish run for Sterling after UK Prime Minister, Theresa May announced a general election next month in order to resolve disagreements within parliament.
Due to the conservative party leading the polls by quite some distance there’s been an element of political certainty which boosted Sterling but this bout of positive sentiment appears to be on the wane.
Much of the reason behind Sterling’s drop can be attributed to the increasing rate of inflation in the UK, which has coincided with reports last weeks that wage growth isn’t rising in line with the Inflation rate. This poses a problem for the UK economy moving forward due to the adverse effects this will likely have on consumer spending, and with the Bank of England indicating that there’s unlikely to be any imminent interest rate hikes to counter this issue I think we could see the Pound continue to decline and I wouldn’t be surprised to see a fall of at least a few more cents for GBP/EUR.
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.