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Pound Sterling continues to soften after Bank of England speech, will the downtrend continue? (Joseph Wright)
This week’s busiest day for the currency markets was Thursday, or ‘Super Thursday’ as many within the marketplace labelled it as there was a large amount of key data releases out of the UK.
The Bank of England decided to keep rates on hold which was generally expected by analysts, but it was during the Governor of the Bank of England, Mark Carney’s speech that Sterling exchange rates saw volatility.
Many had hoped for a more bullish tone from him, with references to likelihood of an interest rate hike in the UK but it never came with Carney adopting a dovish, neutral tone than expected.
Usually when a central bank raised the base rate that countries currency can see a positive boost, and due to the weakened Pound coupled with the UK’s consumer focused economy many had expected to see a rate hike to soften the impact of a steep rise in inflation.
After his speech we saw the Pound lose value and since then the downward momentum has continued as the Pound has lost additional value today.
Personally I’m expecting to see the Pound weaken this month as the formal initiation of the Brexit approaches. That date is now being forward to the 9th of next month and it will be interesting to see how markets react as sentiment is likely to drive the Pounds value more than economic data, as has been the case for almost a year now.
If you wish to be kept up to date with UK/Pound related news feel free to get in touch, as working on a trading floor we’re able to act as soon as the news is released.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.
You can also call in directly on 01494 787 478 and ask reception to speak with Joe.
Source: http://www.poundsterlingforecast.com/2017/02/03/pound-sterling-continues-to-soften-after-bank-of-england-speech-will-the-downtrend-continue-joseph-wright/
