Since my last post Sterling continued it's slide against the U.S dollar falling to a fresh low of $1.5015. This is the lowest we have seen GBP/USD exchange rates since the 14th March with the decline mainly down to weak UK data. For more information on current exchange rates click here.
Following Tuesday's poor UK inflation numbers which triggered a drop for the GDP/USD cross, Wednesday was no better as negative UK Retail Sales also impacted Sterling's performance. Figures released by the Office of National Statistics showed sales in April came in 1.3% lower than in March to once again show just how fragile the UK economy currently is. The news prompted the pound to lose nearly a cent against the dollar over the course of trading.
For live rates of exchange click here.
Further loses were limited as the Bank of England released the minutes from their meeting at the beginning of May, the minutes showed there has been no change to the way policy makers had voted for more Quantitative Easing with the vote remaining at 6-3. Bank of England Governor was once again one the the MPC members to push for more stimulus and when they meet at the start of June he will have one last attempt to try and add to the £375 billion already pumped into the economy before stepping down.
The latest Inflation and Retail numbers could force the BoE into further action and if they were to act we could see the pounds value drop drastically in the coming weeks, with exchange rates dropping below the $1.4830 witnessed a couple of weeks ago.
Today has seen a brief revival for Sterling though with the GBP/USD cross managing to claw back some of yesterdays loses. At the time of writing this post cable had climbed back over $1.51 to reach a high of $1.5126.
The last 48 hours have shown just how unpredictable the currency markets can be and prove how important it is to get the timing right on your currency transfer. If you are a business or private client looking to buy or sell dollars use the link below to complete the contact form to see how much money I can save you and what options I can offer to ensure you make the most from your exchange.
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