Sterling starts off on the back foot

Sterling started off on the back foot as the BoE stress test and financial stability report paints a glum picture.

Mark Carney raised concerns over the rapid growth of China, the election of Trump and the effects this could have on global economics plus although the British economy had done better than the Bank had thought it would, it’s still vulnerable to the uncertainty surrounding Brexit talks and the length of time the negotiations are likely to take. As a result of the stress test results and the governors comments the pound dropped off across the board on Wednesday.

EU inflation figures came as forecast at 10am leading the way for traders to take the single currencies side as it managed a brief but strong rally against the pound and the US dollar, before halting as focused flipped back towards the Italian constitutional vote this weekend coming. As the US markets opened, the euro was sold again, giving a bear two cent swing against Sterling over the day and giving those buying euros some of the best buying rates we’ve seen in weeks.

With the uncertainty over the Italian vote, we are seeing volatile trading conditions yet again so with the recent peak, it might be worth locking in the rate today in case we see a correction over the coming days ahead of the results.
In other news, some research into the transfer activities of the UK showed some interesting results concerning area of the UK and the most popular destination for funds with the following results:

Scotland and NW England like Spain,
Wales and SE England favouring France,
East of England opting for Portugal,
SW England prefer New Zealand and
London favouring the U S of A.

Regardless of destination or currency, the team here at Currency Index will always provide the best rates, best service and most knowledge, so if you have an upcoming transfer to make, make sure you give us a call today.