Sterling hit its highest point against the euro for three weeks yesterday, and remains at its strongest against the US dollar since the summer.
Waiting for the imminent recession and its effect on the exchange rates is like, as they say, waiting for the second shoe to drop. Wait as long as you like but it may never happen. In general at Smart Currency we advise that it’s better to rely on what you can see now and be proactive rather than leave it to fate or the decisions of others.
What we can see now is a pound to euro rate well above the five-year average, the rain continuing to fall in the UK and a wave of strikes set to ruin travel plans, Christmas parties and pantos across the country.
It would be easy to be downhearted! There is good news, however. At Your Overseas Home’s property show last weekend we heard several lawyers explaining about simpler visas and processes for those retiring to Spain, Portugal and other southerly locations. So if you have plans, do visit their website and get in touch with a recommended lawyer.
By the way, we have just doubled the usual referral bonus to £50 for an individual and £200 for a business, so if you know anyone who could use our services, do go ahead here.
In a quiet week for data, what else might be coming down the line to upset currencies? Firstly, very soon there is the Supreme Court’s decision on a Scottish referendum. This would, if allowed, go ahead on 19th October 2023 and as we saw in 2014 can have a strong effect on the pound.
We also have PMI data from S&P Global, an excellent indication of the health of the business sector. And there are almost half of the Bank of England’s Monetary Policy Committee speaking publicly over the next two days, all of which could move sterling.
To lock in today’s exchange rate, or to discuss your options for making the safest and most cost effective currency transfers, call your trader on 020 7898 0541.
