Good morning. Sterling has fallen below the €1.20 mark in trading yesterday, and is now significantly lower than the highs we saw last week. Analysts expect the Euro to continue making ground against Sterling. At 08:30am this morning rates are as follows:
- GBP/EUR 1.1995
- GBP/USD 1.5092
- GBP/AUD 1.7796
- GBP/NZD 2.1787
- GBP/CAD 1.5951
- GBP/CHF 1.6028
- GBP/ZAR 11.531
- GBP/JPY 131.48
- GBP/NOK 9.6896
- EUR/USD 1.2579
The pound has fallen against most currencies, as investors have renewed confidence in the Eurozone. Increased investment has caused the single currency to bounce back. Sterling has dipped slightly due to poor economic data, and fears that recovery may be longer than expected.
Where may rates move today?
The main news today is from the EU. Gross Domestic Product figures are released at 10:00am this morning. This is a measure of the economy as a whole, and can have a significant impact on exchange rates. We expect the monthly figure to show 0.2% growth. The Annual figure is expected to be 0.6% growth. If the figures are higher than this, then GBP/EUR rates will probably drop further. If figures are lower, then we may see a light improvement.
Tomorrow we have some significant data from the UK in the shape of Industrial and Manufacturing production figures, and a GDP estimate. Again, if the figures are lower than forecast, we could see Sterling dip further, as it would indicate the economy is struggling to recover. If better than expected, rates may climb.
Why do the rates move?
It’s simple supply and demand. If economic events such as higher interest rates or figures that show renewed confidence in an economy, then this spurs investment into that area. This investment causes demand for the currency concerned, and when there is a demand for something, it tend to be more expensive.
How can I make sure I don’t lose out?
Rates can move both ways, and there’s no way to predict where things will go. The key way to make sure you don’t lose out is to be fully informed of what’s happening. Contact us today for a free consultation, and find out the different tools we have available to make sure you don’t get caught out. Armed with the knowledge of whats available, you can then make a fully informed decision on when to fix your rate.
If you are looking for the best exchange rates, click the link below to send us an enquiry, and have a free consultation on what’s happening in the currency markets.