Sterling turned a corner yesterday following seven straight days of losses against the US dollar (worse showing since the start of the pandemic). The pound gained 0.7% against the greenback and the euro. The cause of the rise was probably the IMF pointing out that the UK will need to keep interest rates higher than previously forecast in order to beat inflation.
You can read more about that in Smart Currency’s new Quarterly Forecast.
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The fate of exchange rates remains in the lap of central bankers, and they will be to the fore today in the USA, where the Federal Reserve will make its interest rate decision this afternoon, and in Europe tomorrow. The Bank of England will follow next week.
By yesterday, against the euro, sterling had recovered nearly 1% since Monday morning. To take advantage of this and lock it in with a forward contract, do give your trader a call on 020 7898 0541.
Why, after all, let central bankers in Washington DC, Frankfurt or the City of London dictate your budget? With a currency locked in, you are free to focus on your own plans and make those dreams come true. Anything else looks a bit like masochism!
As ever, your trader will be at the end of the phone ready to be of any assistance.
