The month of May has overall been a positive one for sterling. After a sharp fall in April, the pound has since recovered by around 1.10% against the euro.
Yesterday was another good day, seeing the pound receive a boost against the euro after the UK’s unemployment rate fell to 4.8%. Against the dollar, sterling reached its highest level since February as the greenback suffers from the Federal Reserve’s decision to maintain its stimulus programme despite rising inflation.
Sterling saw an initial dip this morning after data revealed that UK inflation more than doubled year-on-year in April, however, markets do not seem overly concerned and the pound has since gained back some strength.
As the Indian variant of Covid-19 continues to dominate the news, Boris Johnson has reassured the British public that there is no “conclusive” data that would suggest a need to “deviate from the roadmap”. Nonetheless, Mr Johnson reiterated that any decisions will be driven by “data not dates”.
Therefore, it is impossible to predict whether the June 21 date will go ahead completely as planned. And, if it doesn’t, what does that mean for the pound? Delays to the final step of reopening could threaten the pound’s current strength.
This can be worrying, especially if you’re planning on transferring significant amounts of money for a large purchase, such as a holiday home later this year.
The good thing with currency is that you can put the control back in your hands. With a forward contract, you can lock in today’s rate. Just give your trader a call on 020 8003 4915.
If you do have further questions about managing and protecting your money for a property purchase abroad, you can find all your answers at the upcoming Your Overseas Home webinar ‘Your move your money’. Register here.
