The pound soared to its highest level against the euro since September yesterday, boosted by a broader rally in market confidence. Both sterling and the euro lost value to the US dollar, however, which fought back after a slow start to the week.
GBP/EUR rose by around a quarter of a cent before falling back slightly. GBP/USD lost almost half a per cent, while EUR/USD fell by a similar margin and is now at its lowest in over a month.
The GBP/EUR rally meant that at one point yesterday you would have paid almost €10,000 less on a £500,000 transaction than at last month’s dip.
These rates won’t last forever, so why not lock it in with a Forward Contract? Talk to your account manager today on 020 7898 054.
As if to underscore that point, currency markets could be on the move early today as manufacturing and services PMI data arrive from the UK and the eurozone this morning. The majority of these reads are expected to nudge upwards, although the eurozone’s figures remain stuck below neutral territory (i.e. below 50).
There’s a lot of looking ahead in this strangely back-heavy week, and things certainly ramp up tomorrow with the European Central Bank’s interest rate decision, US Q4 GDP and plenty elsewhere to keep us busy.
Events in the Middle East continue to be a source of concern for markets. Israeli Prime Minister Benjamin Netanyahu rebuffed calls for a ceasefire yesterday after 24 Israeli soldiers were killed an explosion in central Gaza.
The price of bitcoin fell by more than 15% yesterday. The cryptocurrency had expected to benefited from a recent SEC ruling that allowed the use of ETF (exchange-traded fund) products, but instead dipped below $39,000 for the first time since December.
Donald Trump has won the New Hampshire Republican primaries, increasing the likelihood of an election showdown with Joe Biden. Nikki Haley had been hoping to cause an upset, although most polls predict she is unlikely to succeed in any state.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your account manager on 020 7898 0541 to get started.
