Last week was another tough one for the pound, which has spent the majority of summer straining and sputtering but failing to make up much ground over the euro.
Since the start of July, sterling has weakened by over a cent, a number that rises to almost four cents if we zoom out to 1 June. That means a €300,000 European property would have been over £9,000 cheaper had you bought at the end of May.
The pound is under pressure mainly because inflation is rising just as the economy is showing signs of weakness. This poses a problem for the Bank of England (BoE). Should it cut interest rates to get the economic juices flowing again, or pause the cuts to allow inflation to cool? We’ll find out on 7 August.
Whatever happens, it’s safe to say the outlook for the pound is about as clear as the stormy skies across the country this morning. To protect your money, we recommend you lock in today’s rate by giving us a call on 020 8003 4915. You never know, taking action today could save you over £9,000 too.
This week in the world of currency sees the European Central Bank (ECB) announce its latest interest rate decision on Thursday. The ECB has managed to drag interest rates to 2%, far below where the BoE has got to.
Economists are predicting a big jump when it comes to Friday’s UK retail sales report. The June heatwave is thought to have pushed droves of punters into pubs, restaurants and other outdoor recreational venues.
If Donald Trump is looking for a way to wrestle himself away from the Jeffrey Epstein case, he might use Tuesday’s speech by Federal Reserve chair Jerome Powell as an opportunity. President Trump caused a brief panic last week when he threatened to replace Powell, a man he recently referred to as a “knucklehead”.
