The pound has recovered strongly from its losses at the end of last week and is currently trading at an 11-week high against the euro. If you wish to lock in this rate do please call your trader on 020 8003 4915 asap.
Reasons for the sudden rise in sterling are not obvious, but there is intense debate going on in economic circles about whether central bankers and governments are taking too many risks, pumping money into the economy to recover from the pandemic, but risking inflation at the same time.
There is a guessing game as to which central banks will move first in raising interest rates, and that could be what has fuelled the strength of sterling this morning. In general, a currency strengthens as its interest rate rises.
All eyes will be on the Bank of England tomorrow at 12, as it pronounces on interest rates. It isn’t so much the rates – whch are likely to be unchanged – as the comments surrounding it from the Monetary Policy Committee members.
For most readers, I suspect that the bigger announcement tomorrow will be on which countries – or islands, such as the Balearics – will be on the green list for travel.
Of course, flights are perfectly legal to amber list countries, and even where there are still restrictions property buying and other business transactions are generally regarded as allowable. I do recommend Your Property Viewing Trip by one of our partner businesses if you’re ready to buy.
If that’s you, it is vital to lock in today’s 11-week high with a forward contract so your money won’t be affected by potential fluctuations. Just call your trader on 020 8003 4915.
