Wednesday saw sterling pushed past the $1.59 mark and peaked just over 1.5930 following more positive data coming out of the UK
Over the last few weeks the pound has been supported by improving construction and manufacturing data and today’s news that UK retail sales rose for the month of March have added to expectations that the UK
The British Retail Consortium (BRC) announced that like-for-like sales values increased by 1.3% compared to March 2011, the figures provided easily beat predications of a stagnant performance.
There is a general feeling that appetite for sterling could fall away quickly if there was a run of bad data from the UK, this would lead to global investors pulling out of riskier assets and return to the safe haven U.S dollar. This would lead to GBP/USD rates slipping away from their current levels.
As I have said before there a range of forecasts that indicate that pound/dollar rates could fall towards $1.50 over the coming months, mainly due to the continuing problems in the Euro-zone. By using a Forward contract you can protect yourself from any adverse market movements and book your rate of exchange for up to two years in advance.
If you would like to discuss the different options available click here to send me a direct email or complete the contact form on the homepage of the blog.
