Expat currency news – Is the pound about to weaken?
While the type of international money provider you use can make a big difference to the exchange rate you secure, with some currency brokers undercutting the rates offered by banks by 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?
The major pound-moving event of last week was the UK’s latest Consumer Price Index report, which revealed that domestic inflation had remained negative on the year for the second consecutive month to diminish the outlook of sterling.
Pound to euro exchange rate: GBP/EUR ends the week higher, up from 1.4160 to 1.4254
If you had GBP 100,000 to transfer to Europe, your money would have been worth EUR 141,600 at the beginning of last week but EUR 142,540 at the end – giving you an extra EUR 940.
Pound to US dollar exchange rate: GBP/USD ends the week higher, up from 1.5244 to 1.5272
If you had GBP 100,000 to transfer to the US, your money would have been worth USD 152,440 at the beginning of last week but USD 152,720 at the end, nearly USD 300 more.
Pound to Australian dollar exchange rate: GBP/AUD ends the week lower, down from 2.1380 to 2.1278
At the start of the week your GBP 100,000 would have been worth AUD 213,800 but AUD 212,780 at the end, a little over AUD 1,000 less.
Pound to New Zealand dollar exchange rate: GBP/NZD ends the week higher, up from 2.3303 to 2.3392
At the beginning of last week your GBP 100,000 would have been worth NZD 233,030 but at the end you would have achieved NZD 233,920, netting you an extra NZD 890.
So, what can you expect to happen in the week ahead?
Well, the pound could be in store for a big fall against the euro, US dollar, Australian dollar and New Zealand dollar if the UK’s Gross Domestic Product is found to have fallen in the third quarter of the year. Slowing economic growth would suggest that the UK is still struggling to recover and further discourage the Bank of England (BoE) from raising interest rates before the latter half of 2016. And as a result demand for the pound would also slow.
On the other hand, stronger growth in the UK economy would give the Pound a boost and make your money go further. If you have a GBP/EUR, GBP/USD, GBP/AUD or GBP/NZD exchange rate transfer coming up you may want to watch for how well the GDP prints.
The UK’s third quarter Gross Domestic Product report is due out on 27 November at 9.30am 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.