Good afternoon,
I hope you all enjoyed the bank holiday weekend.
Since my last post the pound has lost over a cent against the dollar, leaving the GBP/USD cross at its lowest levels since 25th March 2013. After a brief recovery following the Bank of England minutes last week the pound has carried on its recent trend by dropping against the dollar and with GBP/USD now sitting at $1.6567, it now means Sterling has lost nearly 4% since the start of July.
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What can we expect for the pound in the coming weeks?
With two of the Bank of England's MPC members voting for a rate hike in the UK there had been renewed optimism we could see a rate rise this year. However, with UK economic data repeatedly missing target and Fed Chair Janet Yellen being extremely positive about the state of the U.S. economy during the weekends Jackson Hole meeting, we could be set for further loses for GBP/USD.
Do you need to buy dollars?
With the GBP/USD cross in free fall, just waiting to see if the rate recovers could prove to be very costly. If you thinking of buying dollars in the next six months, a popular option at the moment is a Forward Contract.
A Forward Contract can help you take advantage of current exchange rates. You can fix the price now for a transaction that will take place up to two years in the future. You secure the Forward Contract with a deposit of 10% of the total value of your transaction and then pay the balance before the contract expires. Once secured the agreed exchange rate will apply for the duration of the contract.
For more information on the different types of contract or to find out what rate I can offer, use the link below or call me directly on 0044 (0) 1442 892 065.
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