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GBP/EUR, GBP/USD and GBP/AUD set for further slides for the second week of November (Joshua Privett)
Sterling finished last week incredibly poorly, particularly on GBP/EUR, GBP/USD, and GBP/AUD rates of exchange, with financial markets still reeling from the news that interest rates for the UK economy wouldn’t be lifted for the entirety of 2016.
The biggest movements for Pound exchange rates came against the Euro, with GBP/EUR up at 1.42 at Thursday lunchtime and down as low as 1.38 by Friday morning.
It’s rare that such finality is given to long-term financial policy for any country. This is why Sterling weakened so significantly in such a short period.
The reason why the Bank of England has suddenly taken such a long-term position mainly boils down to worries about inflation. The UK economy is currently posting the worst levels since records began, and these cannot be corrected in a short time frame.
Inflation hearings will be held on Tuesday by Parliament for the Bank of England to account for the current state of affairs and what is to be done. This will essentially reaffirm the reasons why markets lost confidence in the Pound last week as MP’s demand tough answers which BoE members can normally skirt around in press conferences. As such further falls on GBP/EUR, GBP/USD, GBP/AUD and other Sterling currency pairings are expected.
It seems that more Sterling weakness is yet to come and those looking to buy foreign currency have risk squarely at their feet in the coming months. In particular, Euros buyers should recall that just three weeks ago, GBP/EUR was down to 1.33 – the worst levels to buy since February – off the back of similar news about delays on interest rate hikes.
I strongly recommend that anyone looking to use Sterling as a purchasing currency, most importantly for GBP/EUR and GBP/USD which have been the most significant negative movement, should contact me on [email protected] to discuss a strategy for your transfer in order to negate any harmful effects for your exchange expected in the coming months.
I have never had a problem beating the rates of exchange offered elsewhere, and I will remind regular readers of my articles that these current buying levels can be fixed for up to 12 months should you wish to secure these current rates of exchange and avoid any negative downturns affecting your budget.
Source: http://www.poundsterlingforecast.com/2015/11/08/gbpeur-gbpusd-and-gbpaud-set-for-further-slides-for-the-second-week-of-november-joshua-privett/
