Well, what a difference a day makes. In yesterday's post I mentioned the GBP/USD cross had remained between $1.65 and $1.66 for the last few weeks as the UK and U.S. economies had failed to deliver on what had been forecast. That all changed this morning and the result had an immediate impact on the rate of exchange, both UK manufacturing & industrial production beat their initial forecasts by 0.7% and 0.6% respectively. On the back of the releases GBP/USD rose from $1.6610 to $1.6753, a gain of almost 0.9% leaving the cross at its highest levels since 7th March.
For a free currency consultation click here.
The gains for the pound could continue tomorrow as the Bank of England (BoE) hold their latest monetary policy meeting. If Mark Carney and his fellow MPC members offer any indication that the UK economy is performing better than expected and maybe hint at an interest rate rise, we could see investor confidence push Sterling up across the board.
A positive message from the BoE means rates could rise back towards the highs we witnessed in February when GBP/USD was knocking on the door of $1.68. It is not only the BoE statement that could swing rates though, tomorrow afternoon we will see the latest U.S. unemployment claims and the numbers tend to cause some volatility to the currency pair.
I will keep updated with what happens but in the meantime if you have a requirement to buy or sell dollars in the coming weeks and want to make the most from your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.
Click here to complete the contact form.
