GBP/USD exchange rates rose by over a cent and a half today after better than expected UK Services Sector figures released this morning (Monday). Sterling started the day sitting at 1.5132 against the dollar but following the data release exchange rates climbed to reach a high of 1.5283. For more information on live rates of exchange click here.
The figures released by Markit showed the UK's Services Sector grew at its quickest rate for over two years and because the sector accounts for around 75% of the UK economy the pound strengthened across the board. This mornings Services numbers, coupled with the positive Manufacturing figures which I mentioned on Monday have once again shown that the UK economy seems to have turned a corner and is starting to recover.
For the best rates of exchange click here.
The pound has been in free fall against the dollar recently with exchange rates falling from $1.57back to $1.51 in just over two weeks, this latest spike has clawed back some of the lost ground but with Mark Carney due to hold his first meeting as Governor of the Bank of England tomorrow the gains could well be short lived.
As I have mentioned a few times in recent weeks it has been rumoured that Mr Carney will look to devalue the pound over the coming months, but following the positive data this week I think he will have a tough time trying to convince the other MPC members. Mr Carneys predecessor Sir Mervyn King had been pushing for more quantitative easing right up to his last meeting at the start of June but was unable to secure the majority vote needed which would have enabled him to add to the £375 billion that the BoE have already pumped into the UK economy to try and stimulate growth.
If you need to buy or sell dollars in the coming months and would like to protect yourself against any adverse market movements then contact me today for a free, no-obligation consultation. By using the link below and completing the contact form I can talk you through all the different contract options that will help you make the most of your currency exchange.
Click here to complete the contact form
