Sterling-dollar broke it's recent trend with exchange rates staying within a 30 pip range throughout most of trading today. Early this morning saw a brief blip with rates dropping to a low of $1.5184 before recovering almost immediately with better than expected UK Manufacturing figures boosting the pounds performance across the board and pushing GBP/USD back over $1.5230. For more information on live rates of exchange click here.
This mornings data releases added further support to the UK economy with the UK Manufacturing sector growing at its fastest pace for over two years. The figures showed the sector had beaten original forecasts and could cast some doubts that the UK economy will require further stimulus from the Bank of England. The current stimulus package currently sits at £375 billion and if the BoE were to add to this figure it could cut the pounds value and would mean exchange rates would fall.
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The UK economy has been performing well over the last few months and todays manufacturing figures, coupled improving mortgage approvals could sway policy makers to keep the existing quantitative easing programme on hold for the time being. There has been a lot of talk recently that the new BoE governor Mark Carney will look to devalue by the end of the year but following this mornings positive news he may struggle to convince the other eight MPC members.
With the BoE due to hold their first monthly meeting on Thursday with Mr Carney at the helm it will be interesting to see what actions the central bank take and how markets react.
With so much uncertainty currently surrounding the FX markets it is important to know what options are available to help you make the most of your currency transfer. In the last few weeks we have seen GBP/USD exchange rates fall from $1.57 back to $1.52 and if Mr Carney gets his way we may well see rates fall even further.
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