It has been an excellent day for the pound and dollar buyers as Sterling rose to a six year high against the greenback as British inflation figures increased unexpectedly. Following this mornings data release the GBP/USD cross managed to claw back the ground it lost yesterday by climbing from $1.7061 to a high of $1.7184.
For a free currency consultation click here.
Figures released this morning by the Office of National Statistics showed UK inflation had risen to 1.9% against a predicted figure of 1.6%. This latest reading has pushed us closer to the Bank of England's target rate of 2.0% and will again lead to speculation as to when the central bank will raise interest rates.
Todays inflation figures have come as big surprise, especially as last months inflation reading was down at 1.5%. Junes inflation numbers had given the BoE some much needed breathing space, allowing them to hold off raising the base rate despite the UK economy performing so well.
If the UK continues to perform well and inflation reaches 2.0% next month I don't think it will be long until the BoE have to act. A rise interest rates will make the pound more attractive to investors and strengthen the currency across the board and potentially pushing GBP/USD higher.
If you have a requirement to buy or sell dollars in the coming months and want to ensure you are making the most from your transfer, there are a number of different contract options to help you.
For more information on the different types of currency contract or to find out what rate of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.
Click here to complete the contact form.
