The pound swung alarmingly last week, dropping to its lowest level this year against the US dollar and to a multi-week low against the euro.
The cause, of course, was the ongoing fuel crisis, lack of staff in a range of key industries, the possibility that Christmas trade will be disrupted and effectively that we face a winter of discontent.
Indeed, to read some reports, especially in the foreign press which appear to be thoroughly enjoying it all, things in this country look disastrous.
The fact that the pound swung back up again at the end of the week – and remains there this morning – however, shows that the currency and financial markets are taking a more sanguine approach to current troubles, based on real world data and forecasting.
Even so, the pound did drop by more than 1% in the course of one day last week, and it would be extremely risky, if you are commited to a currency trade, not to lock in your rate in case of further volatility.
You can do that this morning with a call to your trader on 020 8108 5337.
