Spring is in the Air – but not for the Pound

21 March, 2014

Robin Haynes

Sterling is falling away this morning, giving up gains made against the Euro yesterday afternoon and continuing its retreat against the US Dollar. It seems that, despite continuing positive economic data, the Pound has reached its peaks and is struggling to consolidate. Having dropped below 1.2 on the interbank markets, we are likely to see this glass ceiling for GBP-EUR stop rates going back up and as such anyone with Euro requirements in the coming weeks should consider whether they are better off booking a rate now.

The US Dollar has also found strength in recent days across the board, with the Ukraine crisis seeming to drive investors to the American currency, first away from the Euro and now with the same effect against sterling. Having hit 2-year highs recently, GBP-USD has fallen back over 2c in the last 10 days. This continues yesterday, despite worse than expected US jobless claims.

The only data of note today comes in the form of Canadian inflation figures, at 12.30pm. Sending money to Canada is currently 20% cheaper than a year ago – with rates for those of you emigrating or paying bills there at their best since July 2009.

Canadian Dollar Rate – 2009 to date

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