Sterling starts the week roughly 1% up on the euro compared to both last Monday and this time last year, but nearly 3% down on this time last month.
So, a bit disappointing if you missed out on the rate from mid April, but broadly positive. If it allows you to fulfil your plans to buy a property abroad or fund your living costs abroad, why not lock it in today with a call to your trader on 020 8108 5163?
Against the US dollar, sterling is roughly where it was this time last week, but 6% down on the month and an incredible 13% down on last year.
You might ask, could GBP/EUR go the same way as GBP/USD? But who would you ask? Apparently not the brightest minds in the UK economy, who are asked to serve on the Bank of England’s monetary policy committee (MPC). There’s been a lot of chatter lately – and a few newspaper columns – bemoaning how the MPC has failed in its number one priority to keep inflation down, in theory to 2%. We’ll get the inflation figures on Wednesday and the forecast is for 8.9%, against the Bank’s most dire warning last year that it could hit 5%. So much for experts, although you can’t really blame them, given the chaotic nature of the world right now.
We’ll also hear unemployment figures tomorrow, which are expected to stay stable at 3.8%, back to pre-pandemic levels. A different set of results for either inflation or unemploment could cause sterling to move.
If the MPC can’t predict economic movements, it’s probably not worth much of our time trying to guess what the pound will be worth against the euro or dollar for any point in the future. Better to take a rate that will enable you to fulfil your plans, lock it in, and go back to planning your own future.
