Currency Matters

Do you have any currency requirements in 2016?

The outlook in the currency markets is highly uncertain. The sharp fall in oil prices, high levels of volatility in global financial markets and concerns about a slowing global economy, particularly in China are fuelling currency volatility.

The US Dollar has appreciated sharply as the US economy continues to perform relatively well and the Federal Reserve became the first major central bank to start increasing interest rates. The US Dollar is also the main beneficiary of falling oil prices and investors seeking to avoid risk.

On the other hand the European Central Bank continues to ease its monetary policy as the European economies continue to face significant challenges. In the UK it seems increasingly unlikely that the Bank of England will increase interest rates until late 2016 earliest due to recent poor UK economic data and concerns about the wider global economy. This has caused the Pound to lose most of the gains it made in 2015. The prospect of a referendum on the UK’s continued membership of the European Union is also beginning to weigh on the Pound (as with the Scottish independence referendum and the prospect of a hung parliament at the last two general elections the market doesn’t react well to political uncertainty and the Pound usually weakens in the short term at least).

The current consensus for Sterling’s (GBP) outlook is negative or neutral at best. Currency Matters can offer a number of products which help eliminate currency risk. If you need to budget with confidence, you can fix the exchange rate in advance of the transaction by using a Forward Contract.

Please do not hesitate to contact the dealing team on telephone +44 (0) 1695 581 669 or by email to discuss your currency requirements or for a live quote.



Freephone: 0800 458 6736

Dealing Desk: +44 (0) 1695 581 669