Dollar Strengthening... Is the Pound still on the back foot?

Over the past few weeks we have seen the U.S Dollar gain strength across the board- The GBPUSD price has dropped from 1.72 down to 1.6050 and the EURUSD has dropped from 1.38 Down to 1.25.

For clients who have a requirement of purchasing USD for business or personal purposes, then it may be an idea to start looking into hedging yourself if you aren't already, please contact me for hedging strategies to ensure you are protected with the current state in the market.

The question on everyone's mind at the moment seems to be whether the Pound is actually strong at the moment or is it on the back foot- Against the Euro we have seen the Pound as high as 1.28 recently, but as low as 1.6050 against the Dollar- this suggests that it is more to do with Euro strength as opposed to Sterling strength- and for this reason, it may be an idea to start taking advantage of the recent exchange rates.

The Eurozone this year have cut their interest rates on two occasions, and even cut their bank deposit rates to try and boost inflation- these 2 methods have both failed and inflation is still at a record low in Europe- so for this reason MArio Draghi of the ECB has announced that he will be Asset Purchasing over the coming months to try and boost inflation in the economy.

Over the next week we have a lot of high priority UK data such as the BoE rate decision and GDP estimate which could be market movers- so if you have a currency requirement, please don't hesitate to contact me directly for further analysis on any currency pair.