New Year Currency News

Happy New Year from Currency Index Ltd – provider of some of the best exchange rates available in the UK.

The main news this month is likely to be the Bank of England’s interest rate decision on Thursday January 8th. Further cuts in the UK base rate are expected, and that does not bode well for the Pound – normally lower interest rates mean a weaker currency. With the European Central Bank tipped to keep their interest rates higher than ours, that means that predictions of sterling – Euro rates falling to parity (€1 = £1) are perhaps not wide of the mark.

Elsewhere, the Pound continues to struggle across the board. The next 4-6 weeks will be crucial as we see how bad the UK recession becomes – any negative news in the UK is likely to push the vulnerable Pound further still. Your currency broker should be able to help if you would like to discuss your own circumstances and requirements in detail.