Sterling reaches the middle of what future historians are bound to regard as a pivotal week in UK history back to the kind of levels we’ve got used to over the past year.
For GBP/EUR, both the Brexit bounce and post-vaccine vitality have been lost as the third national lockdown starts in earnest. Many analysts believed sterling would be much stronger by now. (Do look out for our next quarterly forecast, which will be out in the next week or two).
GBP/USD is still trading strongly, however, having retained its position at or near the highest we’ve seen for five years. It’s well worth locking in with a forward contract if you have a trade in the year ahead. You do get the feeling that if something can go wrong, either in politics or the pandemic, it may well. President Trump should be leaving the White House with the inauguration just two weeks from today.
On the home front, once again we can spend our days gazing at charts, home-educating our children and wondering when the numbers who have the disease will combine with those who’ve had the jab, to offer the beginnings of herd immunity.
Although Ryanair has been criticised for making “jab and go” promises on summer bookings, we remain very optimistic that 2 million-plus people being vaccinated per week adds up to a relatively normal spring.
Do speak to your trader on 020 8108 5337 to talk through your plans.
