Sterling retreats after inflation falls

By Tom Arnold

Over the last couple of weeks, we have seen something of a change from the stasis that has existed on the currency markets in recent times. News from the US of rising inflation put chances of interest rate cuts firmly on the back foot, and the Dollar was able to push both the Pound and the Euro back significantly – against Sterling managing a near 4 cent gain.

Whereas in the UK, inflation dropped again, with the Bank of England placed to likely be the first of the major central banks to be able to cut interest rates, the Pound has dropped off as a result. Against the Euro we are over a cent lower than the recent highs.

The week ahead is a busy one, without anything too critical in terms of data releases. There is plenty going on though, which could cause some volatility on the markets. Make sure to stay in close contact with A Place in the Sun Currency, to be kept informed of what is happening and the options you have for your upcoming currency purchase. With Sterling losing some ground now is likely to perfect time to be considering a forward contract, for a property completion payment you might have lined up in the next couple of months.

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