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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.

By Alex Ellis

UK GDP data was released today and surprisingly although the data was released slightly better than expected, ever since the release Sterling rates have continued their downturn and the euro exchange rate has now moved 2% in a matter of days. Therefore the effect that UK GDP has had on exchange rates is a negative one and this just goes to show how volatile the currency market can be. For those looking to conduct currency purchases contact our experienced currency brokers using Currency Line who will give you access to award winning exchange rates.

By Alex Ellis

Sterling exchange rates are looking especially weak this morning and this could be a sure sign that the market is anticipating Sterling losses tomorrow however as is always the case with data releases such as these they are very difficult to predict and there is always the possibility that the market may go the other way. If the GDP figure is released worse than expected then this will further the possibility that the Bank of England will further its Quantitative Easing scheme. In the past this has caused Sterling weakness so there is every chance that this will happen again if the BoE choose to adopt this approach.

For those looking to conduct any form of currency purchase the market remains especially volatile, and it seems it may remain this way until some form of balance is obtained in the world economies.