Sterling recovered slightly during trading today with exchange rates climbing by nearly a cent to reach a high of $1.4946. For more information on live market prices click here.
Following the drop we witnessed last week where sterling lost over four cents in two days, the gains we have seen today at least put a temporary halt to proceedings. It is going to be a very quite week for the UK in terms of data releases with the only data of note being Industrial and Manufacturing figures and a GDP estimate all released on Tuesday.
For commercial rates of exchange click here.
It means the pound will be at the mercy of events elsewhere and any positive news from the States or negative news from the Eurozone could see GBP/USD exchange rates fall even further. Positive news from the U.S could strengthen the dollar, especially with the prospect of the U.S Federal Reserve tapering the existing Quantitative Easing programme and negative data from the Eurozone could lead to an increase in safe-haven flows into the greenback which would also see the dollars value rise.
Now that Mark Carney is running the Bank of England I think it is unlikely that we will see exchange rates push back towards $1.60, in fact I would not be surprised to see rates fall closer to $1.40 in the next few months. We all saw what happened on Thursday and Mr Carney had only been in his new role for four days! If the rumours of the MPC members de-valuing the pound are correct I think sterling is in for a tricky ride for the rest of 2013.
If you need to buy or sell dollars in the next few weeks I can offer a variety of currency contracts to help you make the most from your currency transfer. I can help protect you against any adverse market movements or help you target a rate that might not be currently available. For more information use the link below and complete the contact form for a free, no-obligation consultation.
Click here to complete the contact form
