Another quiet day ahead of BoE on Wednesday

21 August, 2018

Grace Rae

Grace RaeFollowing a quiet start to the week, rates have continued to trade at similar levels we have seen of recent. GBP/EUR remained trading within a tight range making it a flat trading day.

It’s likely we could see another quiet day today as market get ready for Mark Carney’s Testimony tomorrow at the Bank of England on the UK’s inflation and economic outlook. The Bank had only recently raised interest rates at the beginning of the month so another rate hike in the short term is unlikely while uncertainty surrounding a ‘no deal’ Brexit appears to be increasing. The investor will be listening closely to this event to see if the Governor provides any further comments on the bank’s views and expectations towards Brexit outcomes. It is the subject of Brexit which is really driving the Pound at present and the fear is that rates are set to stay at these current levels or worsen the closer we get to October, especially if a Brexit agreement is still not resolved.

Against both the Euro and the Dollar, sterling has struggled and it seems like these levels are set to stay for right now so if you have a requirement for Euros or Dollars in the short-term it could be worth considering getting a rate secured sooner rather than later to avoid the risk of further losses later down the line. Our forward contracts allow you to lock in a rate on the full amount you require with just a 10% deposit. Give us a call today and speak to one of our brokers to find out more.

However, what isn’t an ideal situation for one person is a great opportunity for another. Those who are looking to sell your currency back to Sterling are in a good position to do so. Brexit has been holding rates down and providing a great opportunity for those who have sold up overseas and looking to repatriate their funds back. If you are selling Euros, US, Canadian, New Zealand Dollars, or Dirhams then drop us a call to see what your return could look like.