Sterling falls after Super Thursday

Friday 7th August 2015
Super Thursday was anything but for the Pound, as a dovish tone from the Bank of England caused a large sell off for Sterling, pulling GBP/EUR exchange rates lower. The decline has continued this afternoon so in just 48 hours exchange rates have dropped from from €1.44 to nearly €1.41: 

Super Thursday pushes GBP/EUR lower 

On Thursday, the Bank’s Monetary Policy Committee voted to keep interest rates at their current historic low of 0.5%. What surprised many was that only 1 of the 9 members voted for a rate hike. The markets had been expecting at least 2 or more to vote for a hike. 

This means that earlier in the week expectation was for interest rates to go up at the end of the year. Deputy governor Ben Broadbent said the Committee had no specific time in mind for a rise and comments by governor Mark Carney had been misinterpreted. 

Following yesterday’s news it now looks like mid 2016 is more likely. Investors sold the Pound on the back of the news, pulling the Pound lower against other currencies. I said that exchange rates were likely to change yesterday and that has proved to be the case. 

Pound/Dollar rates fall on US Jobs data 

GBP/USD fell yesterday after the Bank of England’s releases, and today the USA posted much better than expected jobs data, which has strengthened the US Dollar further and pulled GBP/USD rates even lower: 

Looking for the best deal of foreign exchange? 

If you want to get the best possible exchange rates, then contact me for a quote. I provide commercial rates of exchange to private and corporate clients looking to trade £5k+. You can send me a free enquiry using the link below, and I will get in touch personally to discuss your requirements, explain how the service works, and discuss the different options you can consider to help you get the best rate of exchange possible. 


Leave a Reply

Your email address will not be published. Required fields are marked *