Sterling exchange rates at 6 week high
18 September, 2018
The week got off to a very flat start for the pound with no data releases due until Wednesday and Thursday. In contrast, the US Dollar continued to weaken further following Friday’s softer inflation figures, combined with a general increase in risk sentiment over the last week. GBP/USD gained around 0.6% throughout the day, peaking at the best buying levels seen since July.
Elsewhere Sterling exchange rates remained very stable, with GBP/EUR failing to make a new high for the 5th consecutive day now, as rates test key resistance levels that will require a significant catalyst to break through. GBP/EUR is close to the best buying rates seen since the BoE hiked interest rates at the beginning of August, an opportunity that is over 2% better than we were seeing a few weeks ago (over £3600 saving on a €200k property).
Sterling markets remain very sensitive to any Brexit developments but will also pay attention to 2 key data releases in the next couple of days. Tomorrow we will get the latest inflation figures which are forecasts to drop from 2.5% to 2.4%, and Thursday morning will see retails Sales for August which are expected to contract by 0.2%. Both of these results would be negative for the pound if confirmed, and so if you wish to play the percentages in timing your transfer then the current highs look very attractive given the overall downward trend and data risks that lie ahead.
If you have a property completion coming up in the risky months ahead, contact your broker today to discuss how you can guarantee the current exchange rate for your completion date with as little as 5% deposit.
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