The pound starts the week in a stronger position against both the euro and the dollar. In fact, sterling is currently trading around 2% higher against the dollar than this time five days ago.
The fate of sterling this week could be affected by the path of the Chinese Renminbi which has begun to recover some of its recent heavy losses. Further recovery of the Chinese currency could send the pound lower against the euro due to the eurozone’s economic links with China.
So this morning may be a good time to lock in today’s attractive rate. You can follow the link or give your trader a call on 020 8108 5163 to do that.
Another key event this week will be Bank of England Governor Andrew Bailey’s speech around the topic of “Monetary policy, policy interaction and inflation in a post-pandemic world with severe geopolitical tensions”. The pound could benefit if his comments support the rhetoric of further interest rate hikes hinted at by both the Prime Minister and BoE Chief Economist Huw Pill last week.
And, of course, we have the ongoing headlines surrounding Brexit and the crisis in Ukraine. Any near-term end to the fighting in Ukraine seems unlikely with President Volodymyr Zelensky firmly stating the only way the war will be resolved is through diplomacy, an uncertain prospect at best.
The good news is that all this uncertainty is easily mitigated with a little forward planning. Don’t hesitate to get in touch on 020 8108 5163 if you’d like to know more about currency fluctuations and how to protect your money against them.
