Why the GBP Exchange Rate Is Falling This Week

The UK GBP exchange rate is falling this week. A few UK economic signs are not strong right now. The UK is seeing more people out of work, wages are not going up fast, and prices keep rising, which hurts the pound. This makes things harder for people who want to make large international money transfers.

For people in the UK who send money to family in other countries, pay deposits for homes abroad, or run businesses with big international money transfers, even a small change in the exchange rate can be very important. If the exchange rate for GBP/EUR, GBP/USD, or GBP/AED moves by just 1–2%, you could see hundreds or thousands of pounds added or lost. The amount of money involved really makes a difference.

This week, there is a lot for markets to take in from the new data. UK unemployment is now at 5%. People in the UK are not getting as much pay rise as before. UK inflation is still higher than in some other places. Because of this, the pound went down against the euro, the US dollar, the Saudi riyal (SAR) and the UAE dirham (AED).

Here, we explain what is going on, why it matters, and what UK people can do to get better value when they send money to other countries.

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UK unemployment rises to 5%: why does this affect the pound?

The UK’s newest unemployment rate went up to 5%. This surprised many people and shows the UK job market might not be very strong right now. UK workers are seeing their wage growth go down. This means people in the UK are not able to buy as much as before when you add in inflation.

A weakening labour market matters because:

• It can slow how much people in the UK spend.
• It put more strain on government money.
• It makes people think the Bank of England may not raise rates.
• When people expect lower interest rates, the UK currency often gets weaker.

When people who invest think that the country’s economy is slowing down, the value of its money usually drops compared to other countries’ money. This week, the pound dropped early in the morning against the euro, USD, AED, and SAR. A lot of people feel this way about the currency right now.

For anyone who wants to send money to another country, a weaker pound means:

• You get less foreign currency when you swap the same amount of pounds
• Buying property in other countries costs you more
• Sending money to family costs more if you want them to get the same value

Timing is very important when you plan to send more money because the exchange rate for GBP can change fast. A small drop in the GBP exchange rate can mean you get less local currency for your transfer.

Check the latest exchange rates now before they change

What is driving GBP exchange rate volatility this week?

This week, the up-and-down changes are because of a few things happening at once.

1. Rising unemployment

A sign of slowdown, which weakens GBP.

2. Slowing wage growth

When wage growth is low, it puts less pressure on interest rates to go up.

3. UK inflation is still relatively high

UK inflation is staying high for a longer time than in the eurozone and the US. This is making the real value of wages and savings go down for many people.

4. Upcoming GDP figures

Markets think there will be 0.2% growth in the quarter. This is a slow rate. If the number is less than that, the GBP can drop even more.

5. Upcoming US inflation data

If US inflation is higher than people expect, the dollar will likely get stronger. This could make the GBP/USD go down even more.

This mix leads to a “risk-off” feeling in the market. In this case, people may not want to take risks. The pound can go down even more because of this.

How much can a 1–2% move in the GBP exchange rate affect a large money transfer?

This is a simple example that shows how a 2% move in the exchange rate can change the value of foreign currency you get when you send £50,000 overseas.

Example: GBP to EUR

When you send more money, like when you buy a house in another country, the effect can be much bigger.

How the GBP exchange rate is performing against key global currencies

This week, many places had weak results. This was true for the Middle East as well. A lot of UK expats, workers, and families use this area to send money often. The demand from them is strong.

For people in the UK who send money to family in other countries or UK businesses that make business payments to other places, these actions can change how you plan your cash flow.

Ensure you are not affected by the changes, compare now

Do exchange rates differ when sending money abroad versus buying travel money?

Yes — there is a major difference.

Travel money

• People often buy it with the following: a debit card, a credit card, or a travel money card.
• It usually has a higher markup.
• A commission fee is sometimes included.
• The rates can go up or down many times in the day.

International money transfers

• You can send money with a bank transfer, specialist online platforms, or FCA-regulated providers.
• These ways usually have lower fees.
• They show fees and charges more clearly.
• Their mid-market rates are often better and more competitive.

This is why many people in the UK get travel money mixed up with international transfers. They think the rates are the same, but these two work in very different ways.

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Where can I find the best exchange rates for sending money abroad from the UK?

To find the best rate when you need to send money in large amounts, or if you send it often, you need to look at prices from a mix of different places. It helps to check several providers before you go ahead. This can make sure that you get a better deal on your transfer.

1. UK high-street banks

• The service is simple to use with your bank account.
• It can have higher fees, and the rates might not be as strong.
• Processing is slower for some countries where the money is going.

2. Specialist online money transfer services

• They usually give you better rates.
• Their transfer fees are lower.
• Payments are often faster when you use local bank accounts in the country you are sending money to.
• These are good if you send money often or need to send big amounts.

3. Currency brokers

• People often use it for large transfers. This can be for amounts like £20k to £500k.
• They give you some tools. These tools let you lock in your rate.
• You also get a personal account manager.

A comparison service can help you see the main differences. Many people use it to compare currency exchange during times when the market goes up and down. This can help you not miss better rates.

What tips help secure the best exchange rate for international money transfers?

Here are some easy ways people in the UK can get better results when times are unstable:

1. Monitor the markets

GBP often changes fast when new economic numbers come out. These numbers can be about inflation, jobs, or how much the country makes (GDP).

2. Use limit orders

Some providers let you set a target rate. If the rate hits that number, it will trigger automatically.

3. Avoid sending via credit card

Credit cards can have extra fees, and they may treat transfers as cash advances.

4. Compare providers before sending

Rates are not the same at each bank, online app, or FX broker.

5. Check transfer fees

Some providers give transfers with zero fees, but the rates be not good. Other providers use the mid-market rate and charge a small fee.

6. Consider timing if rates move sharply

If the pound goes down, it can be good to lock in a rate early. This may help keep its value safe.

Compare and lock in a rate now before they change

Are online services or high street providers better for UK exchange rates?

Online providers tend to offer:

• Better transparency
• Faster transfers
• Lower costs
• Mid-market aligned rates

High-street banks make things easy for you, but they usually have bigger spreads when you exchange major currencies.

For big payments, like buying a house in another country, online services can help you get more for your money. A small change in the exchange rate can change the total local currency you get in a big way.

How often do UK exchange rates change?

UK exchange rates change all the time. On global markets, this usually happens every few seconds. Retail providers, though, update their rates less often.

• Online money transfer apps take about 10 to 20 minutes to send money.
• Travel money providers need 30 to 60 minutes.
• More traditional providers may take one day.

This is how it goes: rates that you see on an app or website can change before you finish your transfer. If you know about the timing in the market, you can help lower sudden changes.

Is it better to buy foreign currency in advance or wait until travelling?

Many people wait until right before they leave to get their travel money. This can be risky because the rates can change fast at the last minute.

For international money transfers, the right time to send money should be based on several things. Think about when you need the money to get there and what the current exchange rate is. Also, it helps to know things like bank hours and how busy the system is, as these might slow down or speed up the process.

• The strength of the GBP right now
• Announcements from central banks
• Big economic events
• Deadlines for your payments
• How much FX risk you want to take

If the gbp is dropping, you might lose money if you wait. If the gbp is climbing, you could get a better result by waiting. You can use market tracking tools or get updates from providers who follow FCA rules to help you watch the market.

Which UK providers offer the most competitive exchange rates?

Different providers focus on different things and needs.

Each one has its own way of setting prices, charges, and the time it takes for things to happen. That is why you should look at several options before you pick one. This way, you can keep from paying more than you need to.

Correct as of 13 November 2025

FAQs About the GBP exchange rate and sending money abroad

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