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Pound plummets on UK political uncertainty

In the last 24 hours the Pound has lost 2c against the Euro, 4c against the US Dollar and 5c against the Australian dollar as investors move assets out of the UK and look elsewhere.

Election results will be announced across the UK throughout today and then throughout Europe on Sunday.

On top of the political uncertainty, this morning’s PPI (Producer Price Index) data came out worse than expected.  Although prices rose 0.4% in May, staving off fears of deflation, analysts were expecting a 0.8% increase which had been priced into the market. More bad news, therefore, for the Pound.

In addition, today sees the release of the monthly non-farm payroll data in the USA at 1.30pm. This is the key employment measure in the US economy and often causes volatility for the dollar rate. If May’s job losses were more than the expected 521,000, expect to see further dollar strength and the exchange rate deteriorate further.

Canadian job figures, due out at 12.00 today, will also have a bearing if you need to send money to or from Canada. Canadian interest rates were last night held at their current level of 0.25%.

Whatever your currency requirements, contact a reputable currency broker for help with your individual circumstances. Your bank is unlikely to be able to offer the best exchange rates available.