Sterling exchange rates have fallen against the Euro this week and the recent rally now appears to have run out of steam. The Bank of England held rates steady yesterday at 0.25% and maintained Quantitative Easing but Mark Carney did mention that there could be a further interest rate cut later this year.
This has resulted in a further slide in the price of the pound against most of the major currencies including the Euro. Clients selling Euros have been presented with another good opportunity to move into sterling. The issue for the Bank of England is that that the Brexit process will take time and this creates uncertainty for individuals and businesses alike. This uncertainty is likely to keep the pressure on the pound for some time to come.
The earliest Article 50 will be invoked by the British government will be in 2017 and it may even take place towards the end of the year following the French and German elections. This could and probably will be a long drawn out affair which makes this a very uncertain period for the pound.
With no UK economic data today eyes look to next week which is extremely light on data releases. Politics is likely to once again be the driving force next week as far as sterling exchange rates are concerned.
If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.
Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me James Lovick directly on [email protected] and I will be more than happy to contact you personally to discuss the various options we have available to you.