While the type of international money provider you use can impact the exchange rate you secure, with some currency brokers undercutting the rates offered by banks by up to 90 percent, picking the right time to move your money is also important. Having a little knowledge of how currencies are performing makes all the difference and our brief currency update gives you the information you need to make a move at the right time.
So, what happened last week?
After dropping spectacularly last week and falling to a number of key lows (including a 16-month worst rate against the euro) the pound started to find its feet again over the course of this week. The UK’s manufacturing, construction and services PMIs all printed below forecast levels, but profit-taking limited their impact on the pound and the British currency actually advanced on the euro and US dollar in spite of new ‘Brexit’ developments.
Sterling’s performance against the ‘Aussie’ and ‘Kiwi’ was less impressive as the two South Pacific currencies benefited from upbeat local data and increased risk-appetite.
Pound to euro exchange rate: GBP/EUR ends the week higher, up from 1.2635 to 1.2993
If you have GBP 100,000 to transfer to Europe your money would have been worth EUR 126,350 at the start of the week but EUR 129,240 at the end, giving you EUR 2,890 more.
Pound to US dollar exchange rate: GBP/USD ends the week higher, up from 1.3839 to 1.4142
If you had GBP 100,000 to transfer to the US your money would have been worth USD 138,390 at the beginning of the week but USD 141,420 by the end, leaving you with USD 3,030 more.
Pound to Australian dollar exchange rate: GBP/AUD ends the week lower, down from AUD 1.9591 to AUD 1.9159
At the start of the week your GBP 100,000 would have been worth AUD 195,910 but AUD 191,590 at the end — a drop of AUD 4,320.
Pound to New Zealand dollar exchange rate: GBP/NZD ends the week higher, up from NZD 2.0684 to NZD 2.1091
At the beginning of the week your GBP 100,000 would have been worth NZD 206,840 but by the end you would have achieved NZD 210,910, netting you NZD 4,070 more.
So, what can you expect in the week ahead?
UK data is all of fairly low volatility next week, with the nation’s Manufacturing and Industrial Production reports being of the most interest. However, several major central banks — the European Central Bank, Bank of Canada and Reserve Bank of New Zealand — are all due to deliver interest rate decisions and their commentary could inspire considerable currency-market movement.
The ECB’s policy decision will be of particular interest, if the central bank expands stimulus as expected the Euro could plummet against peers like the Pound.
The ECB rate decision is due on Thursday 10 March at 12:45pm GMT.
Contributed by TorFX
TorFX is a specialist currency broker that offers far better exchange rates than you are likely to receive from a high street bank.