We have just seen the latest UK Retail Sales figures for the UK, and they were significantly better than forecast. Markets expected a +0.4% rise. I thought that it would be lower than this, but the actual figure came in at a staggering +1.4%. This is way above forecast, and the Pound has risen as a result.
Retail Sales are seen as a barometer of the health of the economy and how confident consumers are. The fact that people are still spending is very positive for the UK economy and is reflected in the upward movement we have seen for the Pound this morning.
Risk of Pound falling when Article 50 is triggered
The GBP/EUR rate is now the highest it has been since the beginning of the month. The fact remains however that next Wednesday article 50 will be triggered, heralding the start of the process of the UK leaving the EU. Most analysts agree that this is likely to push the Pound lower in the short term, and so clients should consider their options if they need to buy Euros or another foreign currency in the next 6 months. It would certainly be prudent to look at what action you can take to protect against the possibility of a falling Pound.
One way of removing your exposure to the currency markets is by fixing a rate with a 'Forward Contract'. This allows you to freeze the current exchange rate for up to 2 years by lodging a small deposit of 10%. This protects you against any market movement and helps you to budget.
Another option is a 'Stop Loss' order. This is an instruction for us to buy your currency if the rate drops below a pre-agreed level. In this way you have a safety net and a worst case scenario should the rate plummet. If it doesn't however, you are still free to take advantage of any subsequent gains in the rate.
It's tools like these coupled with exceptional rates of exchange that enable us to help our clients make the most of their currency. To find out more about how we can help you or simply get a quick quote, click here or complete the form below.
Labels: Best Euro rates, Best Exchange Rates, Brexit, EURGBP, GBPEUR, Pound, Pound to fall against Euro, pounds sterling exchange forecast, UK Retail Sales