GBP/USD exchange rates fall back below $1.51

Good afternoon,

The pound suffered at the hands of the Bank of England today after the minutes from their January meeting showed all nine MPC members voted in favour of keeping interest rates on hold. The minutes had an immediate impact on the pounds value with the GBP/USD cross falling around a cent from $1.5180 to $1.5080.

For a free currency consultation click here.

 

For the first time since July all nine of the central bank's policymakers voted in favour of keeping the benchmark rate at its current level. With inflation in the UK falling to its lowest level in 14 years last month, MPC members Mr Weale and Mr McCafferty have now changed their stance amid fears a rate rise could cause below target inflation to continue.

An interest rate hike in 2015 now looks even less likely for the UK and leaves the U.S in pole position to act first. This doesn't necessarily mean the dollar will have everything its own way this year though. The UK economy could actually benefit in the long term as people continue to take advantage of cheap borrowing, which in turn boosts the housing and retail sectors, which in turn increases the value of the pound.

Big day for the European Central Bank.

Tomorrow will see the European Central Bank hold a press conference where it is widely anticipated Mario Draghi will announce a hefty stimulus package. It is rumoured we could see a U.S style stimulus programme which will see the ECB purchase €50 billion worth of bonds every month for the next two years.

The result of Mr Draghi's announcement is sure to have an impact on the FX markets. So if you are looking to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from you transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.