The pound starts the week slightly on the back foot after recovering by more than 1% over the course of last week against the euro.
Against the US dollar this morning’s decline has been sharp, but limited so far to just around 0.3%. Definitely one to watch, however with tensions ramping up even further in the Ukraine and traders potentially looking for the ‘safe haven’ of USD. If matters do escalate there, there is no predicting what will happen to any currency.
Closer to home, it’s a busy week for data from the UK, starting tomorrow with employment and earnings. However it is the inflation figures on Wednesday that are most likely to impact the pound, as they will influence a hawkish (going up) or dovish (not going up yet) stance on interest rates at the next Bank of England Monetary Policy Committee meeting on 17th March. On that note, the retail sales data on Friday could be influential too.
Last week the Spanish government climbed down on rules that were preventing families traveling there for half term, but too late for some who had already had to cancel plans, so you might pick up a cheap flight this week.
If you’re making serious plans to buy a property abroad, do get in touch with your trader on 020 8108 5163 to discuss locking in your rate.
One other thing to mention is two webinars this week, one for Spain and one for France, but both covering visas, residency, the 90-day rule and no-doubt Irish passports, healthcare, pensions and much else besides. You can get your free e-pass to the visas and residency webinars here.
