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Sterling falls across the board with GBP/EUR GBPUSD and GBP/AUD the worst affected (Joshua Privett)
Following on from my article yesterday Sterling has continued to weaken against all major currency pairings and seems set to continue to slide before the weekend. GBP/EUR is now in the lower 1.39’s, GBP/USD is back down to 1.51 for the first time in two months, and GBP/AUD may reach below 2.11 by the end of today.
Sterling fell yesterday as the news markets had feared came to light months earlier than expected. Mark Carney, the Governor of the Bank of England, announced that interest rates in the UK economy will almost certainly be off the table in 2016. He is now being dubbed the ‘unreliable boyfriend’ for previously stating the BoE would commit to a rate hike in early 2016, but now delaying things far beyond the horizon.
The impact on Sterling in the immediate aftermath was staggering, but more is yet to come. Investors and companies will unwind their long-term positions in the UK economy and on the Pound now that markets have received one of their rare guarantees that better short-term returns will be found elsewhere for their capital – most likely the US economy and US Dollar, who are poised to raise their base interest rate next month.
Companies will be looking to complete these changes by the end of this month, as they aim to get most of the workload done ahead of December and the holiday period. The movements for GBP/EUR, GBP/USD, GBP/AUD and other major Sterling pairings as a result this month could be fiercely negative.
In particular, Euro buyers should remember that in the middle of October, 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 in the coming months should contact me by calling 01494 787 478 and asking the reception for Joshua to discuss how to secure these high levels of exchange ahead of any expected drops. These buying levels can be fixed for up to a year with a small deposit on your transfer, and I have never had an issue beating the rates of exchange offered elsewhere. [email protected]
Those looking to buy Sterling with a foreign currency, can also do the same to discuss a strategy on how to ride these current moves in your favour to their completion within the time-frame you have to complete your transfer.
Source: http://www.poundsterlingforecast.com/2015/11/06/sterling-falls-across-the-board-with-gbpeur-gbpusd-and-gbpaud-the-worst-affected-joshua-privett/
It’s pretty bad situation, but on personal note I don’t really care as long as I am aware of these happening since that way I can make humongous profits and that’s what I have done thanks to this lovely site and my broker OctaFX where they provide me all the market news and updates, it is very easy and straight forward, but it is highly effective and completely free of cost, so that’s what makes trading best work for me with such support.