The pound suffered against the euro last week but managed to recover to the €1.15 mark this morning and is trading above this time last year. Sterling seems to also be gaining some ground against the dollar.
It’s a quieter week on the data front, with fewer key releases. Nonetheless, we will see CBI Distributive Trades, Car Production and Nationwide House Prices for the UK, and Consumer Confidence and GDP Growth for the Eurozone. In the US, comments from the Federal Reserve’s monetary policy meeting on Wednesday could affect the dollar.
This morning, we saw predictions by EY ITEM Club for a strong economic recovery in 2021 as vaccinations and the easing of restrictions continue to take effect.
However, as was made clear last week when the euro rallied, uncertainty remains for sterling as other economies also start to recover.
It is impossible to predict where the pound will go in the next few months, even for the experts! Will the economy fully reopen by June 21 as planned? No one can know for sure.
If you’re looking to make significant overseas transactions this year, the strength of sterling could potentially save or cost you thousands.
We’ve put together our new Quarterly Forecast which offers a wide range of opinions and is full of insider tips from the traders and analysts here at Smart. You can download it for free here.
All this uncertainty can feel a bit like the roll of a dice. The good thing is that you can lock in today’s rate with a forward contract, on payment of a small deposit, giving you peace of mind that your money won’t be affected by fluctuating currencies. Just give your trader a call on 020 8108 5163.
