Sterling had an excellent day yesterday, strengthening by over 1.5% against the US dollar and between 0.5 and 1% against most other major currencies. Both pairings are now at a six week high.
To lock in that rate with a forward contract, call your trader on 020 7898 0541.
Because, to misquote Game of Thrones, if you think this has a happy ending, you haven’t been paying attention, not least to the Prime Minister himself.
Rishi Sunak has warned of difficult decisions and tough times for the economy. Even the most well supported and able politicians find when they get their hands on the levers of power that they aren’t always in control of events.
So what else will be affecting sterling in the weeks ahead? Read our excellent Quarterly Forecast for some analysis. For the dollar, there are the mid-term elections looming, inflation rising again and a government not always in step with its central bank. We’ve seen how that can work out on this side of the pond.
For Europe, winter is coming and there remains the threat to gas supplies from the war in Ukraine and the risk of power cuts and factories on short hours.
The UK has got all those problems, plus Brexit effects, low productivity and inflation.
If you think this all sounds like a tale of woe, unnecessarily pessimistic, let’s hope you’re right! But always keep the downside at the back of your mind and allow for that eventuality with effective risk management and you can enjoy the good things in life while being insured against calamity.
