By Grace Smyth
GBP-EUR and GBP-USD have been trading tightly within a 1 cent range this past week. Not offering much in the way of any exciting movements to cause a stir. Making it difficult for those looking to catch the rate at its best.
Data releases for the UK have been fairly positive with no scary results to cause huge concern for the Pound, however just as the UK is set to come out of a lockdown, fears over the new virus variant sparks new risks which may alter the plans to ease restrictions come the 21st of June. A limited re-opening of the UK could result in lesser economic activity and in turn alter the previously positive forecasts for the UK. Although the news hasn’t had much effect on the market it is certainly cause for concern, especially if our neighbours do not follow suit and continue with a successful re-opening. Sterling backers at Deutsche Bank have reported a change of tune in terms of the Pounds successful future. Having previously backed the pound, are now suggesting that a lot of Sterling’s good fortune has already been priced in and the economic rebound expected in 2021 could be staled if the new variant causes problems.
Across the water, the US Dollar gained off the back of the FOMC minutes release in where a number of Fed members hinted that adjustment to tapering could be a topic of discussion for upcoming meetings. The comments gave the Dollar a small short term boost pushing GBP-USD rates lower, however the drop was soon been reclaimed over the course of the day yesterday.
Both pairings are still offering great opportunities for those looking to send funds overseas, but with the future still uncertain, it could be argued that holding off and waiting for better could be a long wait of even a mistake. If you have time to play with and are a little more risk adverse then our limit order option could suit you. This allows you to place an order at your preferred target rate and should the market reach a level where your target rate is achievable, your requirement will automatically be secured for you. Speak to one of our team if this interests you.
Recent news has reported that a number of popular online banks offering access to foreign exchange have seen large increase in complaints in 2020 according to the financial ombudsman, while despite 2020 being an extremely difficult year for all, A Place in the Sun Currency didn’t receive a single Ombudsman complaint.
If you have an upcoming international transfer to make, whether that be to buy your dream home in the sun or to simply make a payment in foreign currency and you appreciate great service, then do get in touch with the team here to discuss the options we can provide to help you navigate the currency market and action your transfers.