Market Opinion for GBP / EUR and GBP / USD

One of the truths in finance is “nothing moves in a straight line”.

Whether it’s currencies, share prices or your own money (that mostly goes down).

And that’s the core problem for central banks today.

Is inflation still going down or is it headed back up?

In the UK, inflation didn’t budge last month (it was expected to fall). In Australia, it was announced today that inflation has jumped back up. And in the US, it headed back up in July and August after falling heavily at the start of the year.

It matters a lot for currencies.

Inflation drives interest rates. And interest rates drive currencies.

I suspect the Bank of England may pause interest rates at the next meeting. The European Central Bank is expected to do the same tomorrow.

In the absence of rate hikes, currencies may consolidate rather than trend. There can still be big moves, but they may hold within a range.

GBP/EUR and GBP/USD both look to be consolidating.

So what next, what should you do?

Get ahead of the game and read our Guide to Foreign Currency Exchange.

Download the Guide Here - with no obligation of course.

If you are looking to transfer your money, please do get in touch so we can discuss rates and timing.

You can call us on 01872 487 500.

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Current rates: 

Wednesday 25th October 2023 at 11:30

£1.00 GBP = 1.1465 EURO

£1.00 GBP = 1.2124 USD

£1.00 GBP = 1.9134 AUD

£1.00 GBP = 2.0820 NZD

£1.00 GBP = 1.6704 CAD

• Want to Learn More?

• We have created a selection of Free PDF Guides for you to download covering many aspects of buying property abroad, visit our PDF Guides Page today or download our "Buying A Property in France" Guide PDF document.

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• Need to Send Money Abroad?

  • At Clé France / Key Currency, many of our customers have a need for currency exchange.
  • We are pleased to offer our customers favourable exchange rates on international currency transfers.
  • As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.

How to Save Money on your foreign currency transfers

• Key Currency can save you money by offering more competitive rates of exchange than your bank.
• Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.
• All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.

For everything you need to know about French property visit www.clefrance.co.uk

What’s really driving the British Pound right now

Some pretty clear trends have emerged in the past few sessions.

The Pound is clearly down against the Euro and US Dollar, but clearly up against the Australian, Canadian and New Zealand Dollars.

The explanation to that mystery lies in the pecking order of currencies.

When geopolitical risks rise (code for war), the big money (think billions) moves away from some currencies and into others.

The US Dollar tends to be a big beneficiary – it’s the world’s reserve currency. The Euro (despite being only 24 years old) is also considered a solid bet.

We’ll call the Pound a ‘mid-table’ currency among the heavyweights and the more commodity-driven, British colony currencies (AUD, CAD and NZD) are highly sensitive to sentiment (they get dumped).

You could say that knee-jerk response to troubled times is unfair and even outdated, but it still seems to go on.

Basically, market reactions can become self-fulfilling. If enough people believe something is going to happen, then it will.

As always, there’s plenty of data coming out.

We note UK inflation came in higher than expected this week and futures markets indicate there is around a 50% chance of another rate hike before the end of 2023.

That should give the Pound some support when the war drums quieten down.

So what next, what should you do?

Get ahead of the game and read our Guide to Foreign Currency Exchange.

Download the Guide Here - with no obligation of course.

If you have any currency requirements, please do get in touch.

You can call us on 01872 487 500.

To find out the latest rates and get ahead of the pack, register with us by clicking below.

Benefits of using Key Currency:

1. Great exchange rates
2. Quick and easy transfers
3. No transfer fees
4. Expert help and guidance
5. Authorised by the FCA

Current rates: 

Wednesday 19th October 2023 at 10:00

£1.00 GBP = 1.1486 EURO

£1.00 GBP = 1.2105 USD

£1.00 GBP = 1.9197 AUD

£1.00 GBP = 2.0789 NZD

£1.00 GBP = 1.6624 CAD

• Want to Learn More?

• We have created a selection of Free PDF Guides for you to download covering many aspects of buying property abroad, visit our PDF Guides Page today or download our "Buying A Property in France" Guide PDF document.

• Want to Live in France Post-Brexit? download our "PDF Guide to Living in France Post-Brexit" document.

  

• Need to Send Money Abroad?

  • At Clé France / Key Currency, many of our customers have a need for currency exchange.
  • We are pleased to offer our customers favourable exchange rates on international currency transfers.
  • As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.

How to Save Money on your foreign currency transfers

• Key Currency can save you money by offering more competitive rates of exchange than your bank.
• Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.
• All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.

For everything you need to know about French property visit www.clefrance.co.uk