Sterling hit its highest point for well over four months yesterday against the euro. Indeed it has not been this high consistently since the summer of 2022.
It may not stay this high for long this time either, with the European Central Bank pronouncing on interest rates tomorrow afternoon, and with potentially market moving data flying in over the next three days.
To lock in the highest rate for several months, please give your account manager a call on 020 7898 0541.
So what could sink the pound? From the UK, later this morning we will hear the purchasing managers’ index (PMI), an arcane-sounding but actually quite influential report that surveys business leaders across the world. How does the UK compare with our economic rivals, Germany, the eurozone and the USA? We will know by this afternoon.
Tomorrow there is the interest rate decision from the European Central Bank, as well as news on the US economy. There are also two reports on Germany’s economic optimism over the next couple of days, from both sides of the counter – the Ifo Business Climate report and the GfK Consumer Confidence report.
So many reports and surveys, although in many ways signifying nothing, if you take a more sensible approach and simply remove the biggest risks.
There is no doubt that the world economy is at risk, with further tensions in the Middle East and Eastern Europe, between China and Taiwan and, of course, with President Trump, on current polling, back in the White House this time next year. Love him or loathe him, this has huge potential ramifications with the world a much more dangerous place than when he was last in office.
At Smart Currency we certainly don’t believe in being alarmist, but we do believe in being prepared. In a dangerous world, money flows to the euro and dollar and away from the pound. So your account manager’s approach involves looking at the budget you need to fulfil your plans, analysing the potential risks to that budget from moving exchange rates, then finding solutions to those risks.
Please give you’re account manager a call today, on 020 7898 0541.
