The pound starts what could be a long and momentous week in British politics apparently unfazed by the fate of Boris Johnson.
Although down around 0.5% from its highest point last week, GBP/EUR starts the week exactly where it started last Monday, and very close to its highest rate for five years. Compared to the five-year average, you’re getting a discount of around £5,000 for every €100,000 you buy. Well worth locking in with a forward contract, then.
Will the pound fall? Politics can certainly move the markets very sharply. As we highlight in our brand new quarterly forecast – published today, download it here – it is the effect, or potential effect, of political decisions on the economy that has driven market movements for most of the past six years. Swings of five to 10% have often followed elections and changes of leadership.
If war is politics by other means, events in Ukraine could be pivotal this week too. The fate of the pound obviously isn’t the most important thing at such dangerous times, but this does look like a week to limit your financial exposure.
To lock in your rate for the year ahead, call your trader on 020 8108 5163.
Just a quick reminder to download our free quarterly forecast. As I always have to point out, these are simply best estimates of where GBP, EUR and USD may go over the next year, based on what we know today. You absolutely should not base any important decisions on them! It makes fascinating reading nonetheless.
Do enjoy reading it and pass it on to anyone who might also benefit.
