A week can bring significant changes that can flip the script on currency markets. The euro, which has been on the ascendant all year, is now beginning to fall.
The drive of this shift is the dramatic pace change in negotiations between Ukraine and Russia, with US President Trump’s Alaskan summit putting pressure on a speedy peace agreement. While analysts worry about the kind of deal this may lead to for Ukraine, traders responded to the news by investing in European businesses.
The euro has fallen nearly half a percentage point against the pound in the last month, half of that in the past week alone.
It shows just how quickly the value of your currency can change when global politics shift.
To secure certainty for your budget, lock in today’s GBP/EUR rate with a call to your account manager on 020 8003 4915.
Though, it’s not green shoots in the UK. This morning brought the news that inflation is on the rise, reaching 3.8%. The climb puts the Bank of England even further from its goal of 2%, increasing pressure on it to hold interest rates steady.
As ever, it’s impossible to accurately predict what the markets will do in a day’s time – let alone a week. If you can’t risk your currency, it’s safer to lock it in.
