Pound flirts with 2013 low rates

There was no Monday cheer for the Pound yesterday, as losses continued after last week’s bloodbath on the foreign exchange markets. By midday, against the Euro we flirted with the worst rate for sending Euros abroad since 2013, and near a post-Brexit low against the US Dollar. The lowest mortgage approval figures in 19 months, released yesterday morning, did not help; and it seems that now the serious business of forthcoming Brexit negotiations have taken hold of the front pages, that there are renewed concerns over the UK’s future relationship with the EU, after something of a summer respite for the beleaguered Pound.

Just under 37,000 mortgages were approved in August, the lowest figure since January 2015, and 21% fewer than the same month last year.

Meanwhile, a CBI survey of 115 UK financial services firms found that economic optimism has fallen for the third consecutive quarter, the longest negative period since the financial crisis. The culprit once again: anticipated trading conditions post-Brexit.

Conversely, in Germany, business confidence has rebounded to a 2-year high, with Brexit fears in the European economic powerhouse having receded since the UK’s shock decision to leave the EU 3 months ago.

No news isn’t good news
There is very little news due out today likely to change sterling’s trajectory. Minor German and Italian data is followed by Eurozone money supply and then later on we have US consumer confidence, but generally a quieter day for data releases is unlikely to mean any significant change in exchange rates.

With the odds currently stacked very firmly against the Pound, anyone with requirements to send money abroad in the run up to the end of the year should seriously consider their options. Currency Index can provide a fixed, guaranteed exchange rate for virtually any international payment for up to 2 years ahead. So why not contact our award-winning team to discuss your options today?