What is next for the pound?
Despite a lack of strong recent UK data, the Pound has risen against most major currencies in the early trading session. The currency has found support from an optimistic forecast from the EY Item Club, predicting that the bank would still hike UK interest rates twice in 2018 and twice again in 2019. The forecast also predicted that UK growth would reach 1.6% in 2018 and 1.7% in 2019.
This forecast tends to deepen the perceived interest rate policy divergence between the BoE and the European Central Bank (ECB). As the recent Eurozone inflation figures have been modest leaving market participants feeling both Banks are on a separate path of hikes, or non-hikes.
Whether or not the Pound continues to regain last week’s losses depends on how strong this week’s UK data is. Friday’s UK GDP projections may prove pertinent. If the UK is projected to have seen stronger than expected growth in Q1, BoE interest rate hike bets could rise, and the Pound would strengthen.
Until then however, it could be the Euro that drives GBP/EUR movement most, with key Eurozone confidence stats due in the coming days and the ECB’s anticipated April policy decision to take place on Thursday. Any perceived stance shifts from the bank could have a major impact on the Euro.
"The Bureau Buttercrane provide a personal service that really sets them apart from other currency providers. If we need a fast transfer we know we can call or email and have confidence our business will be transacted straight away at the best available rates."
"We use Bureau Buttercrane for the best exchange rates, fast online transfers and great customer service. We wouldn’t hesitate to recommend Bureau Buttercrane as a first class currency exchange provider."
"I always recommend Bureau Buttercrane for currency exchange, I have been changing money with them since 1995. They always provide the best exchange rates and the staff are helpful and friendly. An exceptional service every time!"
"As a firm that operates both sides of the Jurisdiction, we at Luke Curran Solicitors have no hesitation in recommending The Bureau, Buttercrane to our Clients, for a professional and efficient service. A truly trustworthy company to do business with and we can not recommend them highly enough."
"Great personal service with top class rates, we always exchange our currency with The Bureau Buttercrane."
"Great rates, friendly staff and a pleasure to do business with. That's why we wouldn't go any where else."