Over the last week or so, there has been a mixture of positive and negative news playing on the pound. The health of the UK’s retail sector was viewed as “good” for the first time this year, and pubs, cafes and restaurants have finally been allowed to open in Scotland and Wales for outdoor customers.
Nonetheless, some analysts have suggested that sterling is fighting against political uncertainties surrounding the results of the upcoming Scottish elections, as well as continued Brexit tensions and the irresolution over Northern Ireland.
Unlike lockdown, there is no roadmap for currency and even the experts cannot accurately predict what will happen to sterling over the next few months.
If you’re planning on transferring a significant amount of money abroad this year, such as to buy a holiday home, all of this uncertainty can be worrying. As we saw just earlier this month, sterling fell 2% in one day, meaning a €200,000 property became nearly £3,000 more expensive in the space of 24 hours.
At the moment, the pound is still trading slightly higher against the euro than this time last year and is around 1% stronger against the dollar than this time last month.
By locking in today’s rate with a forward contract, you can relax knowing your money won’t be affected if sterling were to weaken. Your trader can help you with all of this, just give them a call on 020 8003 4915.
Finally, if you are looking to buy a holiday home later this year, currency is likely to be just one of many questions you have. Our partners, Your Overseas Home, are hosting a series of free webinars full of expert advice on buying abroad. Register your interest today.
