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Pound plunges on inflation news
UK inflation has come in lower than expected.
As you would expect, the Pound has taken a beating across the board.
A lot of the Pound’s strength in 2023 has come from interest rates hikes. Even more were expected.
But that, of course, depends on inflation.
If UK inflation falls, the Bank of England will hit pause (they’ve already raised rates 13 times).
More recently, we’ve found the European Central Bank has been more hawkish than the Bank of England.
It makes sense – the UK base rate is 5% vs 3.5% in the EU.
They’ve got some catching up to do.
What that means is the Euro could outperform the Pound over the coming months.
The picture is less clear with the US Dollar because there’s already talk of rate cuts in the US.
So what next, what should you do?
As always, plenty of ups and downs in currency markets.
If you have an upcoming requirement, please do get in touch to discuss the latest trends.
Call us on 01872 487 500 to speak to a member of our team.
To find out the latest exchange rates, click below.
Benefits of using Key Currency:
- Great exchange rates
- Quick and easy transfers
- No transfer fees
- Expert help and guidance
- Authorised by the FCA
Current rates:
Wednesday 19th July 2023 at 10:30
£1.00 GBP = 1.1524 EURO
£1.00 GBP = 1.2950 USD
£1.00 GBP = 1.9117 AUD
£1.00 GBP = 2.0720 NZD
£1.00 GBP = 1.7056 CAD
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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.
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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
Pound Sterling is on a roll at the moment
It recently hit 15-month highs versus the US Dollar and almost 11-month highs versus the Euro.
The main driver is, as usual, the outlook for interest rates.
Investors have repriced the Pound on the basis that rates will stay “higher for longer”.
Market expectations are for UK interest rates to hit at 6.5% by the end of next year.
What’s more alarming is economists believe it will push the UK economy into recession.
But the priority is to crush inflation. So up and up they go.
I’m not convinced they will keep rising as much as expected.
Inflation data in most other countries has started to soften quite quickly.
Anyway, what matters for now is that the market believes the Bank of England will be more aggressive than other countries – and higher rates mean a higher Pound.
So what next, what should you do?
If you are looking to exchange Pounds into EUR, USD, CAD, NZD or AUD – these are favourable times!
Call us on 01872 487 500 to speak to a member of our team.
To get the latest exchange rates, click below.
Benefits of using Key Currency:
- Great exchange rates
- Quick and easy transfers
- No transfer fees
- Expert help and guidance
- Authorised by the FCA
Current rates:
Wednesday 12th July 2023 at 10:30
£1.00 GBP = 1.1730 EURO
£1.00 GBP = 1.2935 USD
£1.00 GBP = 1.9330 AUD
£1.00 GBP = 2.0868 NZD
£1.00 GBP = 1.7085 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
Pound, Euro and Dollar in summer showdown
Most of the big news lately came from the little Portuguese town of Sintra.
Each year Sintra plays host to the ECB Forum on Central Banking.
Basically, the super nerds soak up the sun while discussing interest rates and inflation.
As we enter the second half of 2023, what have we learnt?
The Bank of England chief believes the market is wrong that inflation will be “short-lived” ie don’t expect rate cuts any time soon.
The European Central Bank hinted at another rate rise this month and rolled out its usual cliches about inflation being “too high”.
US Fed Chief, Jerome Powell, said he was “not averse” to interest rate hikes at their next two meetings.
All in all, they kind of cancelled each other out with their tough talk.
Despite a bit of choppiness lately, the Pound still looks to be in a medium-term uptrend against the Euro and Dollar.
We have warned that all currencies are hyper-sensitive to inflation news right now.
So what next, what should you do?
As always, we are on the look-out for the best opportunities.
To discuss your requirements, you can speak to us on 01872 487 500.
Click below to get the latest rates.
Benefits of using Key Currency:
- Great exchange rates
- Quick and easy transfers
- No transfer fees
- Expert help and guidance
- Authorised by the FCA
Current rates:
Wednesday 5th July 2023 at 11:50
£1.00 GBP = 1.1675 EURO
£1.00 GBP = 1.2702 USD
£1.00 GBP = 1.9071 AUD
£1.00 GBP = 2.0548 NZD
£1.00 GBP = 1.6882 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
For everything you need to know about French property visit www.clefrance.co.uk
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