The pound starts the week exactly where it began last week against the euro, but worth around half a cent less against the US dollar.
In a change to the pattern we saw in the early spring, sterling has started the week in nervous mood recently.
You can’t really put that down to economic data, as the news has been supportive of sterling in recent days, including excellent readings for the Purchasing Manager’s Index (PMI) for construction and services late last week, at 62.9 and 64.2 respectively.
To decode all that, a reading over 50 means that business leaders are confident, and believe me, those readings are massive: a very good indicator of future business growth. Indeed, the UK service sector showed the strongest rise in business activity since May 1997.
Incidentally, services PMI is a survey that I contribute to, in case you wonder who these “purchasing managers” are!
That optimism is reflected in people’s pockets too. According to the Centre for Economics and Business Research consumers are more optimistic this month than at any point since April 2016.
Part of that will be down to homeowners rejoicing in their properties being worth more than ever, and this morning we have already seen the Halifax House Price Index rising to 9.5% year on year, accelerating even further ahead of last month’s 8.2%
I should also point out that Rightmove’s house price report backed this up, with prices rising 1.8% last month to an average of £333,564.
Like currency advances, however, house price gains can be a fickle friend.
I tend to the opinion that it’s how you’re enjoying life in your home that matters more. That is why we always urge a safetly first approach. I would break that into four steps.
Firstly, decide what you want to do in life. Second, work out what that will cost you. Three, call your trader to discuss your potential exchange rate, and four: lock in that rate so you know you won’t lose it.
Today’s rate is still around the highest for five years and you can lock it in with a forward contract by calling (or emailing) your trader on 020 8108 5163.
