By Alex Ellis

Sterling exchange rates have taken a hit this morning as Purchasing Manager’s Index figures have actually shown a contraction, this means that sterling has dropped from its high seen earlier in the morning. However it is worth noting that this figure does not have a significant impact on UK GDP but will cause movement in the short term.

 Sterling is due for an uncertain year as retail sales figures will be massively affected by the adverse weather conditions experienced over the Christmas period. This is clearly the busiest shopping period of the year and therefore if these sales are affected then the exchange rates will suffer as a result.

 Retail sales make up 60% of the UK’s GDP meaning that if this sector struggles or falters then so does the economy as a whole. All eyes will be on the retail sales figures released in about 3 weeks time as these will be seen as a clear indicator of the health of the economy.

If you do have an upcoming currency exchange then we can provide detailed analysis of any upcoming data which may impact the value of your conversion as well as have a number of tools and contract options to help you buy at the best possible time.