Sterling exchange rates have posed some losses to end the trading week bringing an end to its recent run of positivity. Exchange rates have fallen following poor UK manufacturing figures this morning, the weakest since July 2016. This once again has shown how 1.15 seems to be a significant level of resistance.
From the graph below you can see that this is the 3rd time in the last 12 months the pound has reached 1.15 and on each occasion the pound has fallen quite sharply (see below). This suggests that 1.15 is a significant level of resistance and I believe it will remain that way.
Sterling exchange rates came under pressure following Theresa May’s vote on Tuesday as it suggests that there is still a real chance of the UK leaving the EU on the 29th March with ‘no deal’. The threat of this is likely to keep the pound in check and I would expect continued market volatility in the run up to the 29th March
Protect yourself against adverse exchange rate movements
For those that need to convert currency and make an international transfer, there are steps you can take to avoid the uncertainty in the currency markets. We offer various tools to help protect against adverse rate movements such as Forward Contracts, Stop Loss Orders, Limit Orders and Rate alerts. We also offer exceptional rates of exchange that are up to 5% better than your bank or existing broker might offer.