The pound had an unexpected boost this morning following a surprise announcement from the Bank of England. The central bank's annual survey of household finances showed that the majority of people with mortgages in the UK would be able to cope if the BoE raised interest rates by 2.5%. The news helped Sterling climb against most of its major counterparts, pushing GBP/USD up nearly a cent from $1.5543 to a high of $1.5642.
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What today's announcement has done is remove some of the uncertainty surrounding what kind of impact an interest rate rise will have on the UK economy. This has given investors some added confidence and if the BoE continue to drop hints like today the pound might be able to put a stop to its demise against the dollar.
Since the end of June GBP/USD exchange rates have fallen around 9% and although it's highly unlikely we will see the currency pair push towards $1.70 anytime soon, positive comments from the Bank of England, coupled with some solid economic numbers from the UK could see exchange rates push back towards $1.60.
If you have an upcoming requirement to buy or sell dollars and want to ensure you are making the most from your transfer it is important to know what options are available to you. As a specialist currency broker I have a range of currency contracts at my disposal, by using these tools you can protect yourself against adverse market movements or target a rate that might not be currently available.
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