Bad month for sterling

30 September, 2016

Ashley Finill

Today is the last trading day of the month as September draws to a close in what has been a testing and turbulent time for Sterling. The beginning of the month saw a bright start for sterling, with positive gains coming from the back of negative US and Eurozone data The pound railed on nearly 3 cents on the Euro and 2 cents on the US Dollar. Sentiment with the currency market was seemingly going in Sterling’s favour which was welcomed given the downfall since Brexit, however hope of a revival was slashed when the ECB did not extend their QE programme as expected which sent the pound down. The pound carried on its downward trend and lost over 5 cents overall and is still continuing to fall.

Next month is pivotal for the pound to give us an insight to what Brexit really means for the frail state of the pound, it is the first time that Post Brexit figures are being released in the UK from various sources, these figures will be key to the Pounds fate, can it fight back or will it continue to falter? The risk may be too great should you have an requirement in the coming weeks and may be a good idea to bite the bullet with the current rates are seeing should Sterling carry on it’s demise. The difference in monetary terms on last month, If you were buying €200,000 Euros for example that is costing you just over £8000 more now than it was at the start of last month.

Today we have only a few bits of data to not, German retail sales are to be released this morning whilst late on UK GDP figures are to be announced which is expected to remain at the previous figure of 2.2%. Lastly to end the month European CPI inflation will be released. As always stay in contact with your account manager here at currency Index for all information on what is going on in the currency market.