Further Weakness for the Pound are Made a Reality
9 August, 2018
As the Met office has stopped issuing warm weather warnings, our avid readers may have noticed we have started issuing our own warnings.. the pound is dropping!
Yesterday the downward trend continued as exchanged rates opened lower than where the markets closed the night previous, which is never a good sign and the drop didn’t stop there. As the day’s trading continued we saw the pound lose even more against its majors trading very close to the lows of this time last year. Could we be looking at the same lows again as we approach the Brexit deadline in October?
The past few days haven’t offered up any big market moving eco data so the rates have been moving on market sentiment, and with only 233 days to go before Brexit is due, and more talk of a ‘no deal’ scenario snowballing, predictions for a hard Brexit are now at a 60% probability. Not a great outlook for those with Sterling in hand and an upcoming requirement for Euro’s, Dollars or any other currency for that matter. It would be wise to consider securing your currency soon rather than later to avoid further losses.
We understand that buying your dream holiday home is an emotional and big purchase, so news that exchange rates are not moving in the right direction for you can be disheartening but don’t wait in the hopes that the rates might get better. With the current forecasts of lower rates yet to come, don’t wait to gain an inch when you could lose a mile the other side. Get in touch with one of our friendly brokers here at Currency Index to discuss the various ways we can help you with your forthcoming currency transfers and learn more about how we can lock in rates for the full amount of funds you need with just a 10% deposit, mitigate your losses with our stop loss option and have a general discussion about the current market and what can be expected in the short term.
Elsewhere in the world, the Reserve Bank of New Zealand left interest rates unchanged at 1.75% so no big surprises there and today is set to be another quiet day with little our to move markets. The focus is on the US in the afternoon as they post initial and continuing jobless claims.