Sterling has staged a bit of a recovery over the past 24 hours, strengthening mildly or remaining stable against the various dollars and the euro.
This is despite a woeful picture from British manufacturing in yesterday’s S&P Global manufacturing PMI figures. The Purchasing Managers’ Index (PMI) is a monthly survey and questionnaire of business owners and managers – a reading below 50 indicates that they are pessimistic about the future. Yesterday for manufacturing it was predicted to be 51.3 but was actually 46, which is the lowest since May 2020.
The bright spot however, and this is what saved the pound from sinking yesterday, was services, which were 52.5, while Germany’s were 48.2. However, this was only a ‘flash’ reading, based on a partial survey, so the pound could sink again if the full results are worse.
Some currency experts are predicting a “winter of woe” for the pound, with inflation at somewhere between 11 and 18.6% depending on which economist you read, the start of a recession, multiple strikes and yet more post-Brexit arguments with the EU when we finally get a new prime minister.
Maybe that’s why the services industry is doing so well. Smart Currency Exchange takes part in the services PMI data and certainly there seems no shortage of people looking to buy a property abroad right now.
In case the pound does indeed face a difficult winter, please do call your trader oin 020 8003 4915 and lock today’s stronger rate in with a forward contract.
Also, a reminder that the end of September is the deadline for our summer referral bonus, with a draw for £2,000 worth of flight vouchers available if you can refer a friend. You can start that here.
