With both the Bank of England and the US Federal Reserve set to make interest rate decisions this week, we’ve seen some significant swings in the exchange rate between the pound, dollar and euro.
Compared to this time last week, a pound will get you 0.5% fewer euros. Taking a longer view, the pound is now down more than 3% than this time last year. A significant decline if you’re looking to make a large purchase overseas.
Though with news that average UK wage increases hit 4.7%, ensuring the triple-locked state pension will see a matched rise – way ahead of 3.8% inflation – retirement overseas just got a little more financially comfortable.
As with any moves in the market, you need to work out what they mean for your plans.
To secure certainty for your budget, lock in today’s GBP/EUR rate with a call to your account manager on 020 8003 4915.
Meanwhile, after months of pressure from President Donald Trump and equal and opposite resistance from Federal Reserve Chair Jerome Powell, the US central bank is likely to at last make an interest rate cut.
After such a long hold on interest rates, and the recent downward revision of the US jobs market and the continuing impact of Trump’s tariffs, it’s unclear exactly how the markets will respond.
It’s impossible to have any actual certainty over what all these major decisions and market movements will mean for your money. So, if you have overseas plans, you need to protect your budget.
