An interest rate cut generally has a negative effect on the currency concerned and a hike a positive one, as investors look to move their funds over to higher yielding currencies in order to get a better return.
Most analysts are predicting that the market has already factored in a 50 - 75 basis point cut as the market does move on rumour as well as fact, so should we see a smaller cut this could be positive for the pound and a larger cut could turn out to be quite negative.
This week we have seen Sterling gain ground against a basket of major currencies which is a refreshing turnaround from the close of 2008.
These spikes in the market do not tend to stay around for too long, especially in the current climate so if you do have an upcoming requirement to purchase currency don't allow the rates to drop back down again, call me personally on 0800 328 5884 or follow the link below and I will be more than happy to assist.
This is a brief summary of todays report. Click here to read the full report on our main website
If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me
Have a great day and thanks for reading!
Daniel Wright
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