Well that didn't last very long did it!...In yesterday's post I mentioned that the pound had managed a slight recovery against the dollar but twenty four hours later it seems normal business has resumed.
For a free currency consultation click here.
GBP/USD fell again during today's session with the currency pair falling to a near seven year low.
The pound dropped from $1.4537 to $1.4360, a level not seen since April 2009. It now means GBP/USD has fallen nearly 6% in the last month, which can have a huge impact on your future requirements.
To put the last months drop into monetary terms, converting £250,000 into USD will now see you receive around $21,575 less compared to trade in mid-December.
GBP/USD graph
Why has the pound fallen today?
The pound lost ground across the board today after weaker than forecast UK industrial production and manufacturing numbers. Figures released by the Office for National Statistics showed that industrial output had it sharpest fall since the start of 2013, while the manufacturing figure came in at -0.4% after a predicting reading of 0.1% growth.
Will GBP/USD recover?
At the moment there is very little evidence that the pound will start to recover. If anything there is more scope for the rate to carry on falling.
Events in China have caused investors to seek the safety of the U.S. dollar, especially as they now get a higher yield following the Federal Reserve rate hike last month.
We have also seen investors dumping the pound over the past couple of weeks as there is little chance we will see the Bank of England hiking interest rates anytime soon. In fact there have been rumours we won't see the BoE raise their benchmark rate until 2017.
So with the UK economy faltering and chances of a rate rise fading quickly we could see GBP/USD test the $1.40 barrier sooner rather than later.
If you have a requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from your transfer, 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.
