Good afternoon,
It has been another disappointing day for the pound with the GBP/USD cross dropping back below $1.70 for the first time in nearly a month. Weaker than forecast UK retail figures contributed to Sterling falling for the second consecutive day against the dollar with the currency pair reaching a low of 1.6966 this afternoon.
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Todays move means the pound has now lost over 1.2% since the GBP/USD cross came close to a six year high a few weeks ago. This may not sound like much but in monetary terms can make a big difference, to put the move into perspective, converting £200,000 into dollars will now see you receive around $4,220 less compared to three weeks ago.
Will the pound recover?
It is difficult to say, yesterdays Bank of England minutes seem to have poured cold water over an interest rate rise taking place this year. This has given the dollar some much needed breathing space and if the Federal Reserve continue to be hawkish with their comments regarding monetary policy there is every chance the dollar will start to strengthen.
One of the forecasts I receive from my brokers is indicating we could see GBP/USD fall over the next few months, with a predicted level of $1.67. This is probably based on the Federal Reserve bringing an end to their stimulus package in October which if happens will lend some extra support to the greenback.
If you are thinking of buying or selling dollars in the coming months and want to ensure you are making the most from you transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.
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