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Recovery of sterling gives good news for expats
| Published: | 25 Sep at 6 PM |
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After a good while spent lurking at the back end of the currency pack, the pound sterling is racing back to life against major currencies, spurred on by positive economic news.
The summer slump in sterling exchange rates may have pleased exporters but it did nothing for holidaymakers and expats who saw their regular pension transfers dwindling monthly. More promising economic indices over the last several weeks have seen the British pound regain its position as the top-performing major currency over a period of six months.
According to Forex experts, the beginning of 2013 saw sterling at the bottom of the ladder and unable to even reach the first rung, but by the year’s half-way mark there were indications of resurgence. By the end of the year, say traders, sterling will be right at the top again.
However, for expats, the home country’s currency isn’t the only thread in the story, with the performance of the country of residence’s currency having a considerable effect. For example, the US$ rate against the £ is now around 1.60, with the unexpected Federal Reserve decision to continue with QE causing the US$ to weaken.
Europe and its single currency, on the other hand, is still shaky, with the cracks being papered over but the problems are still causing major concerns.Sterling is at a three-year high against both the Australian and Canadian dollars, with the Canadian currency expected to weaken and the AU$ affected by fewer mining exports to China.
The pound may strengthen further if either country announces a rate cut, and at present it’s holding its own against the New Zealand dollar. Expats are advised to get the best deal as regards currency transfers by using online providers rather than thier banks.
The summer slump in sterling exchange rates may have pleased exporters but it did nothing for holidaymakers and expats who saw their regular pension transfers dwindling monthly. More promising economic indices over the last several weeks have seen the British pound regain its position as the top-performing major currency over a period of six months.
According to Forex experts, the beginning of 2013 saw sterling at the bottom of the ladder and unable to even reach the first rung, but by the year’s half-way mark there were indications of resurgence. By the end of the year, say traders, sterling will be right at the top again.
However, for expats, the home country’s currency isn’t the only thread in the story, with the performance of the country of residence’s currency having a considerable effect. For example, the US$ rate against the £ is now around 1.60, with the unexpected Federal Reserve decision to continue with QE causing the US$ to weaken.
Europe and its single currency, on the other hand, is still shaky, with the cracks being papered over but the problems are still causing major concerns.Sterling is at a three-year high against both the Australian and Canadian dollars, with the Canadian currency expected to weaken and the AU$ affected by fewer mining exports to China.
The pound may strengthen further if either country announces a rate cut, and at present it’s holding its own against the New Zealand dollar. Expats are advised to get the best deal as regards currency transfers by using online providers rather than thier banks.
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