Following some stellar months in the past year or so GBP investors could easily feel short changed by sterling in the past month. Data momentum into 2014 was strong – Purchasing Managers Index (PMI) surveys, which test the economic pulse of private sector companies, painted the UK as the fastest growing economy through November and December, and strong employment figures have also brought some cheer in January. But the exchange rates haven’t fully mirrored this data.
That said, the performance of sterling has still been strong in recent weeks compared to some other currencies, and now is still a good time for people looking to change their pounds into euro or US dollar. However, in the space of just one week, the pound has lost a fair amount of its strength. On Feb 3, the GB Pound / Euro exchange rate was at the 1.218 mark, but just seven days later it’s down at 1.203. So if you were transferring £300,000, you’d have got €365,000 a week ago – now, that same amount would get you less than €361,000.
Today's rate ( in real time) for transferring £300,000 GB Pounds into Euros:
All our rates are updated every 5 minutes to ensure we provide accurate comparisons.
Waiting one week to make your transfer would have cost you more than €4,000. And that’s just a week – think what could happen in a longer period of time. It just shows that when you’re dealing with the exchange rates, getting your timing right is key. If you don’t, you could end up losing thousands of pounds.
Before this recent blip, GBP/EUR had hit its highest level in a year, and against the US dollar, sterling had been performing even better, with close to 32 month highs being hit. Again though, GBP has taken a minor hit against the dollar in the last few days. On Jan 29, GBP/USD was at 1.658, but at the time of writing it’s now 1.641. When transferring pounds into dollars, that’s a drop of $5,000 dollars on a £300,000 transfer in the space of little over a week.
Today's rate ( in real time) for transferring £300,000 GB Pounds into US Dollars:
All our rates are updated every 5 minutes to ensure we provide accurate comparisons.
The euro has benefited from strong data in recent weeks so the highs seen for GBP/EUR may have gone for a while. And in the US, with interest rates remaining ultra-low until unemployment is significantly below 6.5%, the dollar is also expected to have a strong 2014 – which could affect those changing pounds into dollars.
If you’re an expat or you need to make any sort of international payment, World First will give you better exchange rates than the bank, which will put more money back into your pocket. Plus, they provide faster transfers and offer you outstanding service. You’ll get access to services and products that you typically won’t be able to get from your bank – for example, forward contracts which protect you from fluctuating exchange rates by letting you fix a rate for a future transaction.
Written by James Thorp
World First
