The U.S. Dollar is trading close to a 12 month high
“The last couple of week’s has seen a spike in the value of Sterling as currency markets appear to have priced in an interest rate hike in May.
This has provided us with some excellent buying opportunities despite concerns over the effects the governments ongoing austerity measures and the possibility of a double dip recession will have on the UK economy.
The U.S. Dollar is trading close to a 12 month high following the Federal Reserve’s Chairman Ben Bernanke stating US unemployment is going to increase and a full recovery in America is not expected until 2012. Inflation in America still remains relatively low making further Quantitative Easing more likely and an interest rate hike less likely – therefore making the Dollar a less popular currency for investors and a cheaper currency for Brits to buy!!
Sterling has had mixed fortunes against the other major currencies, strengthening recently against the New Zealand and Australian Dollars following concerns of the Chinese economy slowing, weakening against the Swiss Franc which is benefitting from investors wanting to place money in “safe havens” and has strengthened considerably against the South African Rand.”
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