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By Alex Ellis

There are a number of factors that are influencing the currency market today; most notably the political uncertainty and the economical situation in Greece.

Both of these have weighed heavily on sterling and euro and this has caused the dollar to gain strength against both of these currencies as it is seen as more of a safer haven.

I am under the firm opinion that we will not see categorical sterling strength until we clearly know who our political party will be and what their fiscal policies will be. UK debt has mounted up massively since the recession and this needs to be tackled before we can see any form of economic growth.

By Alex Ellis

There are a number of key issues that will affect GBP exchange rates over the course of the coming weeks. Ever since a poll in the Sunday Times a couple of weeks ago showed that the UK is running the risk of a hung parliament, GBP exchange rates have tumbled. This looks set to continue as there doesn’t seem to be anything in the immediate future that can rescue sterling; it also seems that the government are favouring the weak currency in order to encourage exports.

For those looking to conduct currency purchases this doesn’t bode well for those looking to conduct currency purchases, tied with the mounting UK debt it seems that until we have a clear political party in place the currency market will remain especially volatile.

Foreign Currency Direct has a number of tools in place to ensure that even when the market remains as volatile as it currently is you minimise your exposure.

By Alex Ellis

Sterling rates tumble after RICS announce UK housing is outstripping demand

Sterling exchange rates have tumbled this morning as RICS has shown that supply is beginning to outstrip demand in the housing market. This does not bode well for the future of the UK economy because historically the UK has relied heavily on a strong housing sector and this is therefore a good indicator of the health of the economy.

Politics pushing the pound down

Currently the possibility of a hung parliament is pushing the pound down and causing Sterling to lack strength across the board against the majority of major currencies. For those looking to conduct some form of currency purchase this makes for very testing times. At Foreign Currency Direct we have measures in place that can help you when conducting any form of currency purchase.

By Alex Ellis

The political uncertainty and possibility of a hung parliament has all but destroyed the possibility of Sterling exchange rates continuing to recover. This followed the Sunday Times article over the weekend in which a YouGov poll showed that the Conservatives lead over Labour has now shrunk to two points, this maintains the threat of a hung parliament and therefore was seen as a negative for Sterling.

The possibility of a hung parliament has raised question about the future of Sterling exchange rates, especially as the prospective governments seem to be holding back their fiscal policies to combat the current £174 billion debt.

Many analsyts shrugged off the possibility of Sterling reaching parity against the Euro however this seems ever more likely.

By Alex Ellis

U.K. GDP figures released on Friday caused the currency market to tumble even though these figures were released much better than expected. It seems that the market may be anticipating the possibility of a double dipped recession made ever more possible due to the fact that the U.K. is only marginally out of the recession. The U.K. GDP figures were revised from 0.1% to 0.3% and this is ever more surprising as usually this would cause Sterling exchange rates to improve as the data came out much better than expected.

For those looking to conduct currency exchanges at this time it is worth contacting our experienced currency brokers here at Foreign Currency Direct who can help to guide you through the process and ensure you are well informed before committing to any form of currency exchange.