The Pound has fallen substantially against most major currencies due to the Brexit vote. The majority of UK data has been poor and the pound has suffered as a result. The data that has come through has been predominantly pre-brexit. July data is now coming through and I feel we will begin to see the true extent of the damage caused by a vote to leave the European Union. Going against the grain, UK retail sales figures came in better than expected for July and we saw GBP spike as a result. I would not put my hopes on the rally to continue however. I think this can be put down to an increase in tourism due to the low price of Sterling and the excellent whether in UK as of late. The Bank of England (BOE) has recently dropped interest rates and increased Quantitative Easing (QE) after poor Purchase Managers Index (PMI) figures. PMI is an indication of manufacturing in Britain and this coupled with poor Industrial output data caused the change in monetary policy. Ian McCafferty a key member of the monetary policy committee (MPC) has said that should we see more poor UK data more monetary easing is a strong possibility. I believe Sterling will drop further against the Australian Dollar, if you have an Aussie Dollar requirement it may be wise to move sooner rather than later.
If you have a currency requirement it is vital to be in touch with an seasoned broker. The timing of your trade is crucial during such volatile times,.If you have an veteran broker on board he or she can be your eyes and ears in the market and help you make an informed decision. If you would like me to assist with your trade I will be happy to help. Let me know the currency pair you are trading, volume and time scale and I will provide a free individual trading strategy. I work for one of the top brokerages in the UK and as such I am in a position to beat nearly every competitors rate of ex. Here at Foreign Currency Direct PLC we are constantly up to speed with the data releases and events that move the currency markets enabling us to contact you at prime moments to maximise the return on your transfer. By choosing me as your would be looking at around a 3-4% saving in comparison to high street banks. Please do to get in touch by contacting me at [email protected]. Thank you for reading my blog. You can also fill in the contact form below and I will be in touch as soon as possible.
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