Sterling starts the week slightly on the backfoot against the euro and US dollar. It’s close to the lowest for the past couple of months, but still over 3% stronger than this time last year against the euro.
Speak to your account manager about locking in that 3% gain for the year ahead, by calling 020 8108 5163.
The economic and business news has all been of a type to be quietly pleasing – food inflation back to pre-Ukraine war levels – or quietly worrying – for example, raised tensions between the USA and China. So while nothing emerged last week to end this long stable phase for global exchange rates, that could turn on a sixpence.
It’s all waiting for the interest rate decisions, which for the Bank of England is still a month away on 9th May.
In the meantime, the currency markets will be looking closely for signs of what the Bank might do. For GBP this could be the calm before the storm for economic data. On Friday we’ll hear GDP (Gross Domestic Product) for February, and then next week there is unemployment, earnings and inflation.
In recent years the springtime has been “sniper’s alley” for anyone exposed to currency risks, with major fluctuations (of 5% or more, sometimes over 10%) on at least seven of the past ten years.
Avoiding all the risks, stress and upheaval of those unpredictable changes in your fortunes is very simple. Just lock in your rate when you know you are exposed to currency risks and enjoy the peace of mind.
