The Pound may well stage a comeback

Interest rates are the main talking point.

Because the UK economy is looking more fragile than the EU and US, the Bank of England may hit the pause button first.

The market is pricing in a 93% chance of another 25 basis point rate rise in the UK at the meeting later this month.

But that could well mark the top.

Data out this Friday is expected to show the British economy was flat as a pancake in the 3 months to January.

It means the Bank of England can’t really afford to slam the brakes much more without causing a recession.

In contrast, the EU and US are both indicating quite a few rates rises are still to come. Like 4-5 more.

To be clear, interest rate hikes tend to strengthen a currency. So, the net effect of all this is bad for the Pound.

Just to throw a little curve ball into the mix…

The recent UK data has been making economists look rather silly.

I don’t want to jinx it… but things look to be improving.

Should that trend continue, the Pound may well stage a comeback.

We will be watching the data closely.

If you have a currency transfer on the horizon, make sure you keep in touch.

We can help you make the most of the market opportunities.

To speak to a member of our team, call us on 01872 487 500.

Or to find out the latest rates, click below.

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The UK and the EU agreed a new post-Brexit deal for Northern Ireland.

It’s given the Pound a lift, but these days the markets seem bored with Brexit.

Last week we had more of a thunderbolt.

Better than expected UK business confidence and budget numbers really got the Pound motoring.

The market reaction though was quite revealing.

The Pound jumped higher on the day of the news but then drifted back down over the following days.

From a technical perspective, that’s a negative sign.

For the bulls to be in charge, the Pound should have held on to its gains following a positive gap, not given them up so easily.

It means there are plenty of Pound sellers still out there.

I guess one takeaway is that currency markets tend to give both buyers and sellers opportunities.

That makes our job easier.