Sterling has weakened again this morning after hitting a high of 1.1350.
This suggests to me that there is increasing downside pressure on the Pound, and I wouldn’t be surprised to see the pair fall further as the Pound continues its slide from the highs of last month.
GBP/EUR hit the headlines last month when the pair hit an 11-month high, almost hitting 1.16. Since then a raft of unimpressive economic data has been released and the governor of the Bank of England, Mark Carney dampened hopes of an interest rate hike from the Bank of England on the 10th of this month.
UK GDP figures last week suggested that economic growth in the UK has hit a 5-year low, and just yesterday we found out that Manufacturing output has hit a 17-month low in the UK. The sensitive issue surrounding the Northern Irish border is heating up with no resolutions so far and the government has been under pressure owing to the Windrush scandal.
With so much negativity building in quite short period of time we’ve seen the GBP/EUR rate lose a few cents making large transactions costlier for Sterling sellers. The trend appears to be downward from here and the pair are now trading towards the bottom end of their current trend. A move further downward to 1.12 wouldn’t be unusual as the pair trading around that mark for much of the year, so if you would like to discuss an upcoming currency exchange you’re planning do feel free to get in touch.
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 email@example.com and I will endeavour to get back to you as soon as I can.