In today's post I will take a look at events that have effected cables performance in the last 48hours and also look to give you a summary of what has happened with exchange rates in the past five days. If you would like more information on how I can save you money click here.
Since my last post on Wednesday afternoon GBP/USD exchange rates rose almost a cent and a half from a 10 day low of $1.5230 back to $1.5370. Earlier in the week I wrote about how the UK Retail Sales Figures were being released and that the data would cause some negative movements within the currency market. The figures were released on Thursday morning and surprisingly didn't have the impact I expected, despite sales figures for March coming in at -0.7% when forecasts had been for a -0.6% drop.
Any losses against the dollar were limited as the U.S reflected on some poor manufacturing numbers. The U.S manufacturing sector only grew by 1.3% when it had been predicted that we would see a 2.7% rise and pushed rates back towards $1.5350.
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Sterling was also buoyed on Friday morning by rumours of corporate flows into the UK to boost the flagging economy, which prompted a sudden surge in the pounds performance against a basket of currencies. However, it is expected that any gains for sterling will be limited in the short term as the threat of another recession and further stimulus from the Bank of England (BoE) continue to cause a high level of uncertainty.
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So to summarise
Over the course of this week we have seen a 0.75% swing with the GBP/USD cross. Early trading saw exchange rates fall from $1.5350 back to $1.5230 before recovering on Thursday and Friday. To put the move into monetary terms a £200,000 trade would have seen you receive nearly $3000 dollars less had you brought at the low point of the week compared to todays high. It shows just how important it is to get the timing right on you transaction and to know what currency contracts are available to protect you against any adverse market movements.
If you need to buy or sell dollars in the coming weeks don't leave it to chance, with the UK GDP figures due for release on Thursday 25th April having a Stop Loss or Limit order in place could potentially make or save you thousands of pounds. It is forecast that the UK grew by only 0.1% in the first quarter but there is still every chance the UK will fall into recession and if confirmed will see the value of the pound drop massively across the board.
If you would like to know what options are available to you or would like to know how much money I can save you compared to your bank use the link below for a free, no obligation consultation.
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