A lack of UK economic data and positive numbers from the Eurozone meant Sterling suffered against most of major currencies today. When trading opened this morning GBP/USD exchange rates were hovering just over $1.6750 but with the pound at the mercy of events elsewhere, GBP/USD lost over a cent and at one point the mid-market rate was as low as $1.6622, the lowest we have seen the cross since the end of February.
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This week could see the dollar make further inroads into the pounds value. With no data releases from the UK on Thursday or Friday the dollar has a real to chance to claw back some of the ground it has lost against Sterling over the past six months.
So what could impact rates for the rest of the week?
Apart from Trade balance figures on Wednesday there is little else coming out of the UK this week. Stateside, the Treasury department release their monthly statement which is followed by a speech from the Treasury secretary. We will also see the latest retail sales data, unemployment figures, import prices and business inventories and if the majority are positive, their is every chance the drop we have seen for GBP/USD could continue.
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How far rates could fall is impossible to predict but it is feasible to suggest that we could see rates drop back below $1.65. This would be great news for anyone selling dollars, especially after the run Sterling has had over the last few months.
If you are thinking of buying dollars it is still a great time to secure your rate, with forecasts suggesting the dollar will start to strengthen throughout 2014 we may not see rates remain over $1.65 for much longer. Even if you don't require the dollars straight away I can help you secure your rate to take advantage of the current levels.
With a forward contract you can secure your rate now and hold it at that level for up to two years into the future. This is a great tool if you are a business or a private client to help you budget and give you peace of mind.
For more information on the types of currency contract I can offer or to get live market prices use the link below and complete the contact form or call me direct on 0044 (0) 1442 892 065.
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