Last week the pound fell close to its lowest point for 17 months against the euro, and against the US dollar is perilously close to dipping under the low of March 2020 to its weakest since the mid-1980s.
Few analysts are predicting sterling strengthening and many are predicting far worse (including parity with the dollar), so do consider calling your trader on 020 8108 5163 and locking in today’s rate with a forward contract.
Maybe an order to buy is the best option for you, to avoid losing money if the pound suddenly collapses against the euro as it has against the US dollar.
The big news of the week will be the new Prime Minister, being announced at lunchtime today. We can probably expect some market movement around that, despite a Liz Truss win being priced in. Of course, a Sunak win would upset matters considerably, probably for the better for sterling, but I wouldn’t recommend betting on that eventuality.
Over Tuesday and Wednesday there will be keen interest in who the new PM puts in as Chancellor and at the Treasury.
Elsewhere, there is some data to interest the markets this week, including new car, home and retail sales, plus a final reading for S&P Global PMI coming out very shortly.
The big week of the month is next week, with GDP, Unemployment, Inflation and a Bank of England interest rate decision. Will all those predictions of sky-high inflation start to come true? The claims themselves are starting to be pretty inflated now, with Goldman Sachs saying UK inflation could reach 22%, trumping Citi’s 18.6% claim from the previous week.
As the United Nations have pointed out, however, the UN Food Prices Index has fallen to below where it was before the invasion of Ukraine. All those heatwaves apparently were good for the wheat harvests.
Speaking of the weather, with rain and thunderstorms hammering the UK and inflation at record levels, if you are planning on making your escape abroad, do contact your trader today to chat through your currency options.
With the pound heading south, locking in your rate with a forward contract could be the best plan before matters worsen.
The start of September is also a reminder that our £2,000 referral promotion ends in 25 days. More details here.
