The pound is down this morning as the UK government sold bonds at negative yields for the first time in history. While this helps reduce borrowing costs, it also reduces demand for sterling, which weakened against both the euro and dollar on the news. Further putting pressure on the pound was a statement from Andrew Bailey to the House of Commons, who said that negative interest rates have not been ruled out.
Eurozone inflation has continued to drop, figures released yesterday show, with a number of Eurozone countries reporting deflation, including Spain, Portugal and Ireland.
In the US, there are some hopes for relatively positive figures today, with manufacturing and services PMI expected to show a small increase.
Speak to your Personal Trader today on 020 7898 0541 to find out how you can still send your money safely in such a volatile environment. By locking in your exchange rate with a forward contract, you have the certainty of knowing exactly how much you will pay.
