Declining Confidence in Sterling

In recent weeks, the Pound has remained on the back foot against the euro, falling to another year-to-date low. There has been declining confidence in sterling since we announced official Brexit from the EU and more recently thanks to the Bank of England’s decision to downgrade the UK’s growth forecast for both this year and next. Positive figures were posted for UK Manufacturing and Industrial production yesterday which did provide a small relief but ultimately this didn’t hold for too long and the trading day closed lower than where it had started.

Although this isn’t the best news for those with Sterling in hard, for those with Euros, it’s certainly welcomed. The current market has provided the best levels to exchange your Euros back to Sterling since 2011. For those clients with Euros in hand, now is a great time to contact your broker at Currency Index to discuss how we can help with repatriating your funds.

Today session is again another quiet one regarding data this morning already we have had an array of Eurozone data which overall came in positively – further boosting the outlook of a strong Eurozone just now. Later this afternoon the focus turns to the US with Consumer Price Index figures being posted at 13:30. We can expect another flat day for trading today ahead of next week where we could see a few more movements following UK Inflation, US Retail sale and FOMC Minutes released, and GDP and inflation reports for the Eurozone.

If you’re in the process of buying a property overseas and may be concerned about the current market trend it is worth contacting your CI broker today; we offer other solutions to help you secure your currency such as our forward contracts which allow you to fix a rate with just a 10% deposit. A great option for those who may not have the full capital available just yet to secure their currency requirement.