Sterling starts the week in a steady position, trading around similar levels as last week against the euro.
The Bank of England’s decision to raise interest rates, despite the uncertainty around the new Omicron variant, caught markets off guard and sent the pound rocketing on Thursday.
While sterling appears to still be benefitting from this, soaring Covid cases and rumours of a Christmas ‘circuit-breaker’ lockdown in the UK pose the question, for how long?
As health secretary Sajid Javid said, there are “no guarantees in this pandemic”, and there are definitely no guarantees in the currency markets. So why not lock in today’s rate, while it’s still strong. Your trader will be happy to discuss this with you on 020 8108 5163.
And Covid isn’t the only factor creating uncertainty. Once again, Brexit is in the limelight following the resignation of Lord Frost as Brexit minister at the weekend. With Foreign Secretary Liz Truss now taking charge of post-Brexit negotiations with the EU, any change in tack could see currency volatility.
With no major data releases today and a short week for markets due to Christmas hours, the focus is on consumer confidence figures for both Germany and the UK, as well as US personal spending, durable goods orders and new home sales.
Again, if you’d like to secure today’s rate, call your trader on 020 8108 5163.
