GBP makes gains against Euro and USD – Time to Bank or Bust?

Yesterday was a good day for the Pound as weak Euro industrial data combined with a currently weak USD allowed it to make gains. At present we are sat at peak levels against the single currency, going back to May 2017 and against the Dollar going back to June 2016. This is welcomed by many, as for some time we have seen the Pound trade at much lower levels, and as such many are taking advantage of the currently improved buying rates from the Pound.

Today we have little data released so it is unlikely we will see any major movements, however, next week sees a fresh round of Ecostats. So, will we see the Pound break further, or will it go bust and give back these gains?

Technically we are at the top of what is well establish ranges against the Euro and the Dollar, so many of you might like to take advantage of this. With Brexit talks and uncertainty continuing, the Pound could wobble at any time, and add to that the potential that we could shortly enter conflict with Syria might also play a part in currency rates. Next week we have UK inflation data, and whilst the Pound is currently strong ahead of a potential interest rate hike in May. Previously Mark Carney has suggested that inflation would correct itself, so this reading is crucial for the pounds path in the short-term.

Given Mark Carney is not often wrong, and he himself has not voted towards any hike, should inflation levels drop closer to the 2% target this will only push back the Bank OF England’s stance towards an increase, and as such we would see the Gas come off the Pound and its recent gains eroded.

So, unless you are a gambler now might well be a good time to cash in and take advantage of these peak levels, as quite easily and as we have seen many times very quickly these rates may no longer be available.

Speak to your Currency Index broker today for some friendly and professional guidance on how to get the most out of your transfer, particularly if you don’t want to run the risk that rates may move quickly, and the cost of your exchange could greatly increase.