It has been another difficult day for Sterling which has seen the pound fall against most of its major counterparts. The GBP/USD cross moved under $1.68 for the first time since 11th June, reaching a low of $1.6786, a drop of 0.3% over the course of trading today.
Todays move now means the pound has lost around 2.3% against the dollar in the past month. It may not sound like much but on a £200,000 trade you would now receive around $7,800 less compared to the same trade secured at the start of July.
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Will the pound recover?
It is difficult to say but at the moment the momentum seems to be with the dollar. Over the past twelve months the UK economy has recovered quicker than anyone predicted and left the U.S. economy trailing.
This was one of the reasons GBP/USD exchange rates rose from $1.48 to $1.71 in the space of a year but that all seems to changing. The UK recovery now seems to be running out of steam and with the U.S. economy gradually improving and the Federal Reserve winding up their stimulus programme it looks as though the dollar is in a prime position to start eating into the pounds gains.
If you are looking to buy or sell dollars in the coming months and want to ensure you are making the most of your transfer, it is important to know what tools are available to maximise your return.
For more information on the different types of currency contracts or to find out what rates of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.
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