Exchange rate opportunities for Importers and Exporters
GBP/USD – Both currencies are weakening but USD is weakening faster. If you are exporting and being paid in USD – now might be a good time to ocnsider locking in a forward contract price. This will ensure your profit is protected.
GBP/EUR – Euro seems to be finding some strength as Eurozone debt issues lessen. Things brings to an end a run of form for GBP but looking at the recent bank of England minutes I would be surpised if Euro held its ground against GBP. So if you are importing in EUR dont rush to buy EUR at this price – but if your are Exporting this may be a good opportunity to lock in some GBP at this price. This was not expected to happen so take advanatge.