The Pound has slipped a little today but has found it’s feet at around the €1.15 level. With Article 50 coming a week today initially Sterling had started to drop away, but has been supported in the last few days by higher than expected inflation figures.
Retail Sales to affect Sterling exchange rates tomorrow
Tomorrow morning at 09:30am will be key to which way the rate goes in the short term, as we have the latest UK Retail Sales figures. These are seen as an overall barometer of the health of the UK economy as it demonstrates how confident consumers feel. Since the referendum vote, the economy has been performing very well indeed, confounding expectations of a recession as many experts had predicted. Retail Sales had also help up pretty well, but that changed in the last few months. Last month for example, the number showed a 0.2% decline.
Analysts expect tomorrow’s figures for Feb to show a rise of around 0.4%, and if the actual reading is lower than this, expect an immediate drop for the Pound. Conversely if we get a higher reading the Pound will rise, but I think this is unlikely.
Getting the best exchange rates
Those that need to buy Euros are heading into a very uncertain time. We have had a huge increase in clients getting in touch to fix the rate now ahead of Brexit talks by using a Forward contract. It’s impossible to forecast which way the rate will go of course, but by fixing a rate you remove your exposure to the currency markets, meaning you don’t get caught out by rates falling.
If you need to make a transfer in the next 6 months then why not get in touch to see how we may be able to help you. Our rates of exchange are much better than you can achieve at the bank, and we can also beat other currency brokers rates. When converting a large sum the savings can be considerable, often many thousands of Pounds.