Sterling made marginal losses yesterday against key currencies, the euro and US dollar, falling by 0.16% on Tuesday afternoon.
Despite yesterday’s wobble, the pound is 0.85% higher than this time last week against the US dollar.
If you were buying a $500,000 property in the USA, the exchange rate movement would mean the price changed by over £3,000 in the space of a week, highlighting just how essential it is to have a currency plan in place. This week, that movement was in your favour, but remember, markets are known for their volatility, so that might not always be the case.
To fix the rate for the year ahead, call your account manager on 020 7898 0541.
The US dollar’s strength comes off the back of Federal Reserve chair, Jerome Powell’s comments at the congressional hearing yesterday. Powell reinforced that the central bank does not see it fit to reduce interest rates until inflation moves closer to the bank’s 2% target.
Powell is also due to speak this afternoon which could add further fuel to the fire.
Tomorrow morning, UK GDP figures will reveal how the economy fared in May after stalling in April. Current forecasts expect to see 0.1% growth.
