The pound has propelled yet further to an impressive twenty month high on a basket of other currencies. This includes a move up by 0.65 percent on the Euro over the past week to a mid-market rate of 1.221. It has also strengthened by a huge 1.75 percent on the US Dollar to a mid-market rate of 1.611.

These are strong highs to start the week before the ‘tell-all’ UK GDP figures on Wednesday reveal how well or not the UK has really done in avoiding recession in the first quarter. The GDP figures could have an impact on exchange rates, so if you want to discuss taking advantage of the current rates for a currency transfer, please get in touch in the first half of a week.

Sterling rose throughout last week, firstly due to a series of smooth Spanish debt auctions. As the UK is seen as vulnerable to the problems in the Euro-zone, the success of the auctions helped to build confidence in Sterling. Investors are continuing to choose the Pound rather than the US Dollar to hold their funds, as in the US, the introduction of more quantitative easing is still seen as a very likely move to be made by the Federal Reserve to help bolster  the US economy. In the UK on the other hand, there was a turn up for the books last week, when the prospect of more monetary easing was dampened after the Bank of England minutes were released. These revealed that one policy member, Adam Posen, is no longer supporting such a move. This meant that UK policy makers voted 8-1 against further stimulus and the Pound found some instant strength.

The icing on the cake at the end of the week for Sterling was some very optimistic UK retail data. Retail sales were revealed as jumping up by a huge 1.8 percent in March – a much bigger rise than the forecast of 0.5 percent. This sharp improvement in retail figures helped Sterling to consolidate its twenty month high before the weekend.

UK GDP figures on Wednesday will be the central event of the week for Sterling. Should the figures indicate a return to recession in any way, Sterling could lose its recent highs. If the figures are strong however, and give even more evidence that no more monetary stimulus will be needed in the UK, Sterling could continue to do well. Feel free to register an enquiry or give me a call if you’d like to discuss any upcoming transfers and get a quote, or if you’d like me to watch the exchange rates on your behalf this week.

Other key events for Sterling will be UK house price data today and consumer confidence on Thursday.  The US interest rate decision on Wednesday could also exert some influence on the position of the US Dollar so keep an eye out if you have any transfers involving Dollars coming up.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.