Sterling strengthened marginally against the euro yesterday, and a little more against the US dollar, but movements were muted ahead of today’s budget.
However, even the slight improvement in GBP/EUR yesterday was enough for it to hit yet another highest point since spring 2022.
To lock that in ahead of today’s budget, call your account manager this morning on 020 7898 0541.
Sterling has lacked the impetus to go significantly higher lately, and threats are mounting. Yesterday the GfK Consumer Confidence index revealed that the mood among German consumers is at its best since April 2022 and we have just heard that Germany’s economy has grown ahead of expectations in the past quarter, albeit only by 0.2%.
On the other hand, the US jobs market was revealed to be at its lowest ebb for nearly four years. The JOLTs job openings report showed the smallest number of new jobs on offer from business since January 2021.
What does all this mean for your exchange rate? Things are highly complicated at the moment due to the influence of the US election, today’s budget and the twin interest rate decisions next Thursday from the Bank of England and the US Federal Reserve. But certainly, there are growing risks for sterling.
Labour’s first budget happens at midday today and we will keep you informed of any sharp movements in currencies following it. However, our account managers are available now to discuss your options.
