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‘What will the most uncertain election in years do for sterling?’ Will you need to buy or sell the pound in 2015?
The pound is in for an interesting 2015 with a general election and the prospect of an interest rate rise. The raising and lowering of interest rates has a large effect on exchange rates. If it is expected interest rates will rise in the future then the currency should strengthen, if it is expected rates will fall the currency should weaken. Sterling has risen against most currencies in 2014 on the back of this expectation but so far no rise has happened. This expectation appears to be being pushed back all the time, if it continues to do so sterling will suffer.
The most uncertain election in years is going to hamper business and consumer confidence. We saw the pound drop 4% due to the Scottish Referendum, the General Election 2015 is arguably more significant because it involves the prospect of the UK leaving the European Union undoing decades of political and economic union with Europe.
The pound has had a rocky start to the year with mixed data and it has only performed well against the Euro because the Euro is much weaker. Sterling has suffered against most other currencies and I personally feel to take last year’s performance as an indication for 2015 performance would be a mistake. If you are buying or selling the pound in 2015 making some careful plans now could well save you money down the line.
We offer a range of contract options to help you make the most of any market movements, if you wish to get some news or just check if you really are getting the best deal from another provider please contact me Jonathan on [email protected]. I look forward to hearing from you.
Source: http://www.poundsterlingforecast.com/2015/01/08/what-will-the-most-uncertain-election-in-years-do-for-sterling-will-you-need-to-buy-or-sell-the-pound-in-2015/
