Sterling has started to regain the ground it lost against the dollar with exchange rates climbing by around 1% in week. In the last seven days GBP/USD has risen from a low of $1.6267 to reach a high this morning of $1.6427. A string of weaker than forecast data releases last week took some of the gloss off of the UK recovery but it has done little to dampen the pound performance. In todays post I will take a closer look at what we can expect for Sterling/dollar over the rest of this week and beyond.
For a free currency consultation click here.
This week could be fairly volatile for the FX markets especially for GBP/USD. Over the next couple of days we will get the latest UK retail figures for January, the Bank of England (BoE) inflation report, a speech from BoE governor Mark Carney and new Federal Reserve chair Janet Yellen delivers her report on monetary policy.
Tomorrows retail figures are predicting a rise in sales for January and if that is true it will once again show that the UK economic recovery is in full swing. A positive reading for the sector could lead to further gains for the pound and push rates back towards $1.65.
Want to know when your preferred rate is available? Click here.
But lets not get to carried away, as with any positive usually comes a negative and if the retail figures push up sterling's value we could see Mr Carney and the BoE step in to try and weaken the pound. A few weeks ago Mr Carney made a comment that he doesn't want the pounds increased value to hinder the UK recovery by making exports more expensive and Wednesdays speech will again give him the opportunity make that point again. I will of course keep you posted of what happens over the next few days.
As a dedicated currency broker I have a range of tools at my disposal, so if you are looking to target a rate that is not currently available or want protect yourself against any adverse market movements use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065 for a free no-obligation consultation, to ensure you a making the most from your currency transfer.
Click here to complete the contact form.
