Pound exchange rates have fallen this morning to halt the recent resurgence. We have seen a rally of nearly 6% since mid July but has the run ended?
This morning we have seen the pound slide across the board following comments made by Michael Saunders, a member of the Bank of England Monetary Policy Committee (MPC). The nine members of the MPC are responsible for setting interest rates. Saunders was talking to local businesses in Barnsley and mentioned that due to Brexit uncertainty and slower world growth, the next move for the Bank of England could be a cut.
This came as somewhat of a surprise to the market and has caused a sell off for the pound. It has fallen to a three week low against the US dollar nad nearly 1 cent against the Euro.
Protecting yourself against adverse rate movements
There are so many possibilities in the next few months, rates could move either way, by large margins. If you need to convert currency then this volatility could cost you thousands if rates move against you.
We offer various ways to protect against adverse rate movements. A ‘Forward Contract’ allows you to freeze the current rate for up to 12 months, removing your exposure to the market. A ‘Stop Loss’ order secures your currency if the rate drops below a certain level, giving you a worst case scenario. A ‘Limit Order’ secures your currency at a higher rate should you be targeting a particular level. We also offer free rate alerts, and exceptional rates of exchange for both private and corporate clients.