Well the Pound certainly had what can only be described as a choppy week on the currency markets, gaining ground against some majors and continuing to drop against others.
The Australian and New Zealand Dollar had poor a poor week across the board and one thing to be a little wary of which you may not think would effect the strength of the New Zealand Dollar is the milk scare that has arisen. Already countries are starting to ban milk from New Zealand and with milk being quite a large export for New Zealand this may cause the New Zealand Dollar to drop in value.
Regarding the Australian Dollar I feel that the prospect of further interest rate cuts in Australia will weigh heavily on the Australian Dollar and that we may even see the AUD break through the 1.75 barrier this week.
Against the Euro, Sterling has seen a sustained period of loss, this is really starting to hit those looking to buy properties in Spain or France right where it hurts and I have many clients at the moment asking me if I feel that the rates will improve in the near future. It just seems at the moment that sterling is 3rd on the podium with the Dollar and Euro taking gold and silver medals. Personally I do feel that the Pound will start to bounce back againt the Euro as economic data is steady in the U.K and Europe still has many problems as we are all aware.
I still feel Sterling/Euro should be over and above 1.20 and although I don’t feel we will see that soon I still think that the Pound will claw a little back in the short term.
The Pound against the Dollar is the one to be wary of if you need to buy Dollars or any currency pegged to the Dollar. With the AUD and NZD coming out of favour the Dollar will more than likely be the currency of choice to shift into. Personally I think we may see the GBP/USD rate creep below the 1.50 barrier in the near future mainly due to investors attitude to risk.
If you have an upcoming currency requirement involving buying or selling the Pound, whether you are based in the U.K or not I can help you. All you need to do is fill in the enquiry form on the right hand side of this page and we will get in touch.Our company has won awards in national newspapers for our exchange rates against all major brokers and also a National Business award for customer service so even if you are fairly happy with your current provider it is always sensible to shop around and speak with us.