It’s been a more muted fortnight for sterling as it has drifted from its near two-year high of mid-June against the euro. However, it remains well above the average position of the past year and, indeed, the past five years’ average.
To fix that rate, 1.5% up on this time last year, call your account manager on 020 8108 5163.
Sterling’s lack of movement last week was despite the relative excitement of high-level data including inflation, and an interest rate decision from the Bank of England. This week, in contrast, there is very little economic data for the markets to chew on. There is also a fading chance of an upset in the general election, at least on this side of the English Channel.
The French election, however, remains a source of great interest for the markets with voting in the first round this week and either the far right or far left likely to be in the ascendent.
There is also the first US presidential election debate on Thursday night (early Friday night in the UK). Four months ahead of the actual election, it will be a chance to see how both Biden and Trump can stand up to 90 minutes of argument. So by the end of the week, the political makeup of our nearest geographical, political and economic neighbours could be heading in very different directions.
The currency markets will be taking note and there could be movements in exchange rates.
Whether that will happen, and in which case in what direction is, unfortunately, completely unknowable. The safest course of action is to take a “safety first” approach with your currency and lock the rate in at a level that allows you to fulfil your plans.
