Sterling is continuing to enjoy its early summer in the sun, remaining well above the average for the year against both the euro and US dollar.
While economic performance and what it means for interest rates is dominating other major currencies, for the pound it is politics in the driving seat. Yesterday’s TV debate between Rishi Sunak and Sir Keir Starmer was a reminder that it’s not all in the bag for Labour just yet.
The fall in the strength of the Indian rupee after that country’s surprise general election result yesterday was a reminder that there are always risks in elections and referendums.
To ensure that your money – and future plans – are not affected by volatile currencies, please call your account manager on 020 7898 0541.
There is some lower-level data over the rest of this week, but on Monday things ramp up again, with unemployment and earnings on Tuesday and Gross Domestic Product (GDP) on Wednesday.
However, before all that, tomorrow there will be an interest rate decision from the European Central Bank (ECB). The ECB tends not to surprise the markets too much, with decisions well signposted. Nevertheless tomorrow does pose a risk to GBP/EUR, so do give your account manager a call to discuss fixing your rate for the election and interest rate period and beyond.
