How could the Budget affect exchange rates?

Pound/Euro rates have fallen a little further this week, and currently sit at around the €1.2750 mark.  (Click here to see live currency graphs.) There are some important things happening over the next few days that could cause further volatility for Sterling

If you need to exchange currency and would like to get a quote for your transfer, click here to send me a free enquiry. The rates of exchange I provide are up to 5% better than banks and other brokers may offer, and on large transfers this could mean savings of thousands of Pounds.

I’ve listed the main things I think could affect exchange rates this week below.

UK Budget Report

Tomorrow (Wednesday) the chancellor gives his latest budget. This can often affect the Pound, as he gives economic forecasts for the coming year, along with growth estimates, Spending and borrowing forecasts and fiscal stimulus.

Osborne still needs to balance the books, and due to the global economic slowdown there is a good chance that there are going to be some difficult choices in this budget. I expect further cuts to welfare spending, and also some tax rises to generate extra revenue. It’s a tricky task and I think the main thing that will affect the Pound will be any surprises to UK growth forecasts.

BoE Monetary Policy Committee

On Thursday, the Bank of England announces it’s latest decision on interest rates. These will be left on hold again at 0.5% and I expect all 9 members of the committee will have voted for this. The minutes and press conference though is what to watch out for. The comments made here often cause the Pound to rise or fall, depending on whether the comments are interpreted as positive or negative. It’s likely that they may cite economic risks of a Brexit, and this in turn could cause the Pound to fall.

Getting the best exchange rates

In the last few trading days, we’ve seen the Pound/Euro rate as between 1.2750 and 1.3050, representing good opportunities for both those needing to buy Euros, and those converting currency back to Pounds. Short lived movements in your favour can make a huge difference to what you get when converting a large sum, and having a good currency broker on your side to monitor peaks and troughs make a real difference.

If you need to convert currency in the next few months, and would like to discuss your requirements with me, feel free to get in touch by clicking here. I can run through the options available for you to consider, and provide a quote for you to compare with your bank or existing broker. You may be surprised how much you can save.

Whether you’re buying or selling property abroad, or a business that buys and sells overseas, I can help you achieve exceptional commercial rates of exchange that you’re unlikely to be able to better elsewhere.

Click here to send me a free enquiry today

Leave a Reply

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