Michael Vaughan, co-founder of Swift FX, which offers a secure and personalised foreign currency exchange service, looks at how the foreign currency markets have been affected this month.
The Pound hit its highest level against the US dollar in a year this month following the predictable Labour landslide election result and the tumultuous US presidency campaign, which has seen an attempted assassination of Donald Trump and Joe Biden stepping out of the race.
Likewise, earlier this month, the Pound to Euro exchange rate recorded its highest weekly finish in two years.
But why is the Pound performing so well lately?
The economy is showing signs of improvement and interest rates remain high, making it a great investment opportunity for overseas investors.
Likewise, if you are a UK resident who has always fancied buying a property abroad, now would be the perfect time to make that investment and get more for your money.
Already, as we approach the end of July, the record highs are starting to drop. So, if you are going to take advantage of the higher that usual value of the Pound, you need to move quickly.
There are a few imminent announcements coming that could also impact the value of the Pound further, including a Bank of England interest announcement due in August. Could interest rates be cut after seven consecutive months of holding them at the same rate? Experts seem to be 50/50 on this one with some predicting a cut won’t come until the Autumn. The UK GDP (Gross Domestic Product) figures for Q2, which is expected to show that the UK economy has grown for a third consecutive quarter, will also be released.
If anything, July has shown us just how fast foreign currency markets can change and how they are influenced by world and political events. When big changes are happening around the globe, the markets react quickly which can be catastrophic if you have foreign investments or are in the process of purchasing an overseas property.
At Swift FX, we are keeping our customers updated on the rate changes with up-to-the-minute market information via our exclusive online portal and dashboard, enabling them to move fast when the opportunity presents itself.
If you don’t have easy access to market data or a dedicated broker, now would be a great time to get both. It could save you thousands of pounds on future investments or currency transfers.
For more information about Swift FX, visit https://swiftfx.co.uk.
