Tuesdays Pound Dollar Rate Forecst

Tuesday morning saw sterling lose further ground against the greenback as investors look to head back to the safety of the US dollar. As we head closer to Thursday there are still growing concerns that a deal with Greece’s private creditors will not be agreed and they will end up defaulting on their mounting debt levels. This prompted the GBP/USD cross to fall back into the mid $1.57s, a 1.4% drop on the highs we saw on Friday afternoon.

UK data released on Tuesday has shown that British House prices have dropped 0.2% more than predicted and Monday afternoon’s news that US service sector had grown at its fastest rate since February 2011, would have given added incentive for investors to head back towards the safe haven currency.

If problems in the Eurozone continue we could see the rate fall further despite the recent upturn in UK data. Forecasts have suggested we could see the pound/dollar rates fall back towards $1.55 within the next three months. However if a deal is not struck between Greece and its private creditors on Thursday, it might be a case of sooner rather than later that we see the rates reduce further.

With all the uncertainty surrounding the currency markets it is all about timing to ensure you are getting the most from your currency exchange. Click here to send me a direct email or use the contact form on the homepage of blog to discuss the different options available to you.