The pound strengthened by half a cent against the euro last week and begins Monday at its highest level in August so far. The UK economy passed its most recent test courtesy of better-than-expected Gross Domestic Product (GDP) numbers, which helped allay fears that low growth was setting in.
Students across the country will know the feeling all too well. As thousands of anxious children (and their parents) find out about their A-levels and GCSEs, this week has something of a make-or-break feel for the pound too. Wednesday’s inflation report is expected to show headline price increases nudge closer to 4%. Awkward timing for the Bank of England, which just eleven days ago eased interest rates to a two-year low.
The simple fact is that if you leave things up to chance, your money will be at risk this week. The best course of action is to lock in today’s rate and get peace of mind, regardless of what happens. Call your account manager today on 020 8003 4915 to discuss how we might assist you.
Last week ended on a quiet note, but that was because all eyes were trained west towards Alaska, where a visit with Donald Trump allowed Vladimir Putin to end his years in the diplomatic icebox. Few were surprised when the meeting yielded no immediate peace or ceasefire. However, the US president will today meet with Volodymr Zelenskyy and other European leaders to try and hammer out a deal that would be acceptable to both sides.
The outcome of these talks will go a long way to deciding where currency markets move this week. Peace in Ukraine would be a welcome tonic. But should there be no agreement, we could be looking at another period of unpredictable, uncomfortable trading.
