Against the euro and US dollar, sterling starts the week close to its highest since August.
A steady climb in the value of a currency like that of sterling since the mini-Budget – now around 13% stronger against USD and 5% against EUR from its lowest point – won’t continue indefinitely and will generally end in a reversal, whether minor or significant. So, if you’re making big plans for 2023 and you’re relying on the exchange rate being around this high level, it’s a good idea to either keep a close eye on things or, even better, lock it in straight away.
As the festive season starts to kick off, it would be understandable if the currency markets aren’t your first concern and you miss the rate you require. What you can do is talk to your trader about an Order to Call. With this, you set a minimum rate at which you need to act, or a higher rate where you will be happy to lock the rate in or make a transaction. If the exchange rate reaches that, your trader will give you a call and you can then decide whether to make the transaction or not.
Or you could opt for an Order to Buy, with the same process except that your trader will automatically buy the currency if/when it hits that rate.
Call your trader on 020 8108 5163. to discuss either of those options.
It’s a quiet week for data. Indeed, it’s a relatively quiet fortnight before the all-important inflation, unemployment and GDP readings, then the interest rate decisions in mid-December. However, there are plenty of other geopolitical and economic factors that can move exchange rates before then. To lock in today’s rate with a forward contract, just give your trader a call.
