Sterling exchange rates have experienced a bit of a pull-back today, after it’s emerged that the most important sector within the UK has a less bullish outlook for the upcoming months than many economists had expected.
Last week the UK economy also showed declining sentiment in the Industrial and Manufacturing sectors, and I think it’s no coincidence that the Pound is declining as a result of these disappointing data releases.
These sentiment readings have come in the form of PMI (Purchasing Managers Index) readings and these indicators offer the markets an insight into the short-term expectations in the relevant industry. The disappointing readings have softened hopes of an interest rate hike in May as many had hoped after the UK economy had surprised the markets with it’s strong performance recently.
Now that hopes of a rate hike have declined, I wouldn’t be surprised to see the Pound fall further from here, especially if the economic data releases out of the UK take a turn for the worse.
We’re also entering a key time for the UK as the Brexit negotiations are taking place this week in London, as Michel Barnier is in London to discuss them. He’s the key figure from the EU side so expect any major updates to result in movement between the Pound and the Euro.
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.