After climbing steadily against the euro since the beginning of the month, sterling has been falling for the past two days. Nevertheless, it has (on the whole) stayed above the previous resistance level of €1.20 that it took over five years to beat consistently and looks like an excellent rate to lock in with a forward contract for the year ahead. You can do that right now with a call to your trader on 020 8003 4915.
The big fear is that this level is a short-term aberration and it will revert to its recent average several percentage points lower.
Against the US dollar, on the other hand, the slide of the last three weeks has halted in the past two days.
The arrival of spring traditionally has people making big plans for new projects – that’s why the show we sponsor, Your Overseas Home, get your free e-pass here, is on 26 March – but violently changing exchange rates may put you off committing.
It probably shouldn’t. We thought the final settlement of the Brexit question would bring some stability, then Covid came along. We thought beating the pandemic would bring stability and then the Ukraine war came along. With currencies, as someone once said of history, it’s “just one damned thing after another”.
Threats to the stability of currencies are always myriad but especially now, from inflation getting out of control to a breakdown in oil and gas supplies, or, just as likely, a threat we haven’t as yet considered.
So with the pound riding so high, if you’re holding out for something better, you may have a long wait.
That’s why we advocate an approach of deciding what you want to do, locking in a rate that allows for that, and ploughing on with your plans.
One last thing, reading through the customer feedback forms I was struck by how many satisfied customers say they were recommended to Smart by friends or family. If you know anyone who might benefit from our service, do tell us via this form and pick up a £25 thank you from us too if they go on to trade. Thank you.
