There were no significant moves in sterling over the Bank Holiday weekend against the euro and it remains close to where it was on Friday but around 0.5% down compared to the beginning of last week.
The picture is more positive against the US dollar, with sterling climbing by around 0.4% in early trading today and adding to last week’s gains.
The much-anticipated Jackson Hole economic symposium led to a record leap in share prices and a marked weakening in USD, after US Federal Reserve chairman Jerome Powell expressed fears over the Delta variant driving Covid cases higher and gave no indication of any tapering to economic stimulus measures. Instead, he said that tightening monetary policy would be harmful for jobs and that current high inflation is only temporary.
The world starts the autumn waiting to see if vaccines have seen off the worst of Covid or whether we are in for yet more restrictions.
The situation with GBP/EUR remains as indecisive as it has been since mid February, as the markets look for any signs of relative performance economically in the aftermath of Brexit.
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