Sterling starts to fall but will 1.16 be on the cards for sellers (Steve Eakins) May 22, 2013 at 10:46 am
Following yesterday UK Inflation Figures the price of sterling fell yesterday across 17 of the 18 major currencies. The only currency pair that did not fall on Tuesday’s trading was GBPZAR which climbed by over 0.5%. GBPEUR fell by over 0.5% GBPUSD fell by nearly a 1% all within a 60 minute time frame. This again goes to show that the markets can move very quickly and easily add costs very quickly to any house purchase, euro based invoice or international mortgage payment.
UK Inflation fell further than previously expected matching my personal thoughts mentioned in my blog yesterday. (Click here to re visit it.) This is probably not the bottom of the market this week as I expect a further fall today following UK Bank of England minutes and UK Net borrowing figures. All pointing towards this afternoon being the time to buy pounds probably over the next 10 days. Sellers of the pound are of course concerned as GBPEUR will probably fall under 1.17 and GBPUSD under 1.51, however there is the potential for a rebound tomorrow.
On Thursday we have the UK GDP figures and UK Retail figures which I expect to show an improving picture for the UK. Retail is connected to upwards of 60% of the UK Economy so I believe could quite easily help retake the losses seen over the last 24 hours. Clients selling the pound then may wish to wait until tomorrow to buy their currency. The risk however is that the day gains we could see tomorrow may not take back the losses we may see later today.
If you’re considering making a foreign currency transfer Buying Euros, Buying Dollars, Buying Pounds or any other currency then feel free to contact me directly for a free quote. Working for one of the UK’s leading currency brokers I am confident we can save you money compared to using your bank. Feel free to send me an email Steve Eakins email@example.com