How low can you go? Further losses for GBP as signs of recession add to Brexit woes.
12 August, 2019
Last week was yet again another bad one for the Pound as on Friday we saw the UK quarterly GDP figure come in at -0.2%. Another negative quarterly figure and we are officially in recession – not good news for the Pound or the UK.
This combined with the ongoing Brexit uncertainty saw GBP drop across the board, and leaves it now at a 10 year low against the Euro, and a 34 year low against the USD.
Scarily the pound lost 2.6% against the Euro alone last week, and has now seen successive declines for the last 14 weeks.
And many are predicting further declines, as it seems now the only thing that will stop a no-deal Brexit and the Pound going off a cliff would be a general election, and that in itself could be devastating for GBP.
So it seems in the short term we are braced for this downward trend to continue, in a sentiment driven and volatile market where Brexit woes and poor Ecostats are killing the Pound slowly.
This week we have a number of data releases which could see rates push lower – UK wage and employment data Tuesday, and retail sales and inflation Wednesday. Negative readings here will only fuel the downward spiral we are seeing across the board for GBP exchange rates.
Remember though that we offer a few ways that you can help mitigate the risk of your transfer to help protect your costs from rising, so don’t wait for it to get worse and contact us today. And if you have some funds available now you can always fix the rate using one of our forward contracts, so don’t be like Boris and get in touch to look at options for your own deal before things get worse.
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