Sterling has started the week slowly, showing no clear direction after last Thursday’s drubbing following the Bank of England’s warnings of a deep and long lasting recession, with inflation hitting 13%.
However, with currency markets, whenever a piece of news hits and exchange rates move sharply, you tend to get a quick rethink. This time the rethink has included the notion that maybe the BoE is just trying to get all its bad news out at the same time, and that anyway, maybe Europe and the USA’s projections will soon be just as bad, or should already be.
Hence sterling has remained remarkably strong, above this time last year when GBP was still taking advantage of its brilliant performance on the vaccine, and 8% up on summer 2020.
To lock it in with a forward contract, call your trader on 020 8108 5163 or fill in the form here for a quote. We’ve made it much easier to get a quote now, so why not?
In four weeks today we’ll have a new prime minister, whose first job will be to try and prove the Bank of England wrong.
Traditionally August was regarded as the ‘silly season’ for news, as there wasn’t much for the newspapers to write about. This year’s prime ministerial leadership contest has featured claims and counterclaims, briefings and evident horse-trading for government positions behind the scenes which have been far from edifying. Still the silly season then, just different.
However, the candidates are setting out different plans for monetary policy which could have a serious impact on our currency in just a few short weeks.
So to avoid the risk of that damaging your overseas property budget or lifestyle, do call your trader today or fill in the form and we’ll get back to you.
One other thing worth mentioning, our big summer referral draw. We’re entering those who refer a friend or family member (who goes on to make a currency trade of at least £2,500 by 30th September, T&Cs apply) into a draw for a £2,000 flight/holiday voucher. We don’t see a huge number of referrals in the summer so you stand a fair chance of winning, why not give it a go?
