Sterling/dollar exchange rates have dropped nearly 4 cents in the last 24 hours following an announcement from the Bank of England (BoE) and a positive jobs report from the States. This afternoon saw GBP/USD rates fall to $1.4868, the lowest level we have seen since June 2010, before recovering slightly. For more information on live market prices click here.
Yesterdays BoE did not raise any eyebrows initially, with interest rates kept at 0.5% and the current quantitative easing package being held at £375 billion. Normally you would expect the pound to gain a little strength, especially after the positive data we have had this week from the UK Manufacturing and Services sectors. However, following the announcement the BoE warned markets they would not look to raise interest rates anytime soon which caused Sterling to drop around two and half cents against the greenback over the course of the afternoon.
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The decline did not stop there though as Fridays positive non-farm jobs report from the States came in much higher than forecast, it had been predicted that 165K jobs were created in June but when the figures were releases at lunchtime today the actual figure came in at 195K. This caused the dollar to strengthen almost immediately and push the GBP/USD cross down another cent and a half in a matter of seconds.
It now means we have seen Sterling lose over 5% against the dollar in just over two weeks and there is every chance we will see rates continue to fall over the next few months. To put the recent decline into monetary terms a £200,000 trade will now see you receive nearly $16,600 less compared to a fortnight ago.
It shows just how quickly things can change in the currency markets and how important it is to get the timing right on your transfer. With a range of currency contracts available I can help you make the most from your transaction as well as protect you against any adverse market movements. If you need to buy or sell dollars in the coming months and would like more information on how I can help use the link below and complete the contact form for a free, no-obligation consultation.
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