The Pound has continued to suffer in overnight trading in the Asian markets, falling below $1.28 against the US Dollar, and hitting €1.16 vs the Euro at one point. Rates have recovered a little this morning, but the outlook for Sterling looks rather bleak.
How far could the Pound fall against EUR & USD?
Since the referendum vote, the Pound has fallen almost 15% against the US Dollar and 11% against the Euro. The question is will it continue to fall. The reason it’s dropping is worries about the financial state of the UK economy in the wake of the Brexit vote. Property funds have ceased trading, economic figures are likely to be poor, the BoE are likely to cut interest rates, and there’s a real chance of the UK entering recession again. I think there is a real chance the BoE will cut interest rates to 0.25% next week, and the following month may bring them down to zero. If that happens, expect the Pound to continue falling in value.
I’ve read reports from HSBC and Goldman Sachs forecasting that GBP/USD could fall as low as parity, and GBP/EUR rates as low as €1.07/€1.08. This is grim reading for anyone that needs to convert Pounds, for property purchases abroad of buying goods from overseas.
Need to convert currency and worried about exchange rates?
Those that need to convert Pounds to any other currency may wish to consider fixing a rate sooner rather than later. When you compare the current levels to what we saw a few weeks ago they don’t look great, but if the rates to continue dropping, what we can offer now may well start to look extremely attractive.
We can help any clients that need to convert £5k+ on a bank to bank transfer basis. Our typical clients are those topping up accounts overseas, buying and selling properties abroad, or business that buy goods from overseas or take payments in foreign currencies. Our rates are up to 5% better than banks and other brokers may offer. Get in touch for free using the link below to get a quote and find out more about the foreign exchange services we offer