Foreign Exchange: The Pound Falls Still Further

On the foreign exchange markets, the Pound has fallen against the Euro for the sixth consecutive day, heading towards a low of 1.1150.

With Moody’s Investors Service reported that the UK’s Aaa credit rating may be at risk if the government doesn’t meet its deficit-reduction targets the Pound also weakened against the US Dollar.

The UK economy is slowing this quarter raising growing concerns that there may be a contraction in growth in the 3 months to June.

Many key areas, including manufacturing and housing are struggling and as the government’s public spending cuts hit, consumer spending has dropped.

But it’s not just concerns over the UK economy that’s weakening the Pound, it is also falling against the Euro amid speculation that Europe will announce a rate increase in July at the monthly press conference on Thursday.

So all in all Euro buyers may be well placed to take advantage of the current rate before further losses are likely this week.

If you would like a quote or to discuss the options available to manage risk, our currency exchange broker partners, TorFX would be pleased to help you.