This morning the latest inflation hearings have been pushed back till next Tuesday. Speculation is that interest rates should be raised soon due to climbing inflation levels. Rates were cut last summer due to fears the economy was going to slow dramatically due to Brexit. However this hasn’t materialized to the extent expected ergo the speculation that interest rates should be raised again.
The Pound has struggled recently to make any headway against the Euro due to the recent political instability surrounding Theresa May’s minority government coupled with ongoing problems with Brexit negotiations. Compromise is the watch word in these talks and Mrs May’s original hard line stance is no longer viable. Issues such as freedom of movement are nowhere near as clear cut as the Tories originally wanted.
Key to the foreseeable future of the Pound’s strength will be the trade negotiations and this looks set to be full of compromise if a deal is ever to be reached.
The Pounds short to mid-term future is full of uncertainty. The markets do not react well to uncertainty. Those hoping for the GBP to return to the 1.40 levels against the Euro are clutching at straws, I believe that current levels may improve slightly as the better than expected growth props the pound up slightly. However any gains will be fleeting as eyes turn back to the Brexit negotiations which are set to dominate the economy for the next 2 years.
On another note the situation with Qatar continues to be unresolved and as such we will not be trading Qatari Riyals until a resolution has been achieved.
If you’re traveling short term, current levels may look appealing in the next couple of months. If you have any questions on a particular currency requirement please feel free to contact me at firstname.lastname@example.org.