The pound had a strong week last time out, riding a wave of post-Budget relief to hit a five-week high against the euro. All told, the pound to euro rate improved by about half a cent – the equivalent to a couple thousand pounds on a €250,000 purchase.
There’s only two full weeks to go until Christmas, and while there might be a temptation to think ahead to presents and placating relatives, there’s still more than enough time for sterling to weaken. That’s especially true with a Bank of England interest rate decision on the horizon. Nobody can say what’s going to happen, but the smart money is on a cut from 4% to 3.75%, a scenario that could see the pound weaken markedly.
The easiest way to protect your money is to lock in today’s rate. With a forward contract, there’s no need to stress in the run-up to Christmas. Give one of our account managers a call 020 8003 4915 and you’ll be able to prepare for the big day in peace.
Britain’s much maligned economy showed signs of life last week. Positive news on house prices and the professional services sector gave the pound a leg up. Friday provides another window into its recent run with economic growth data for October, the period leading up to the Budget marked by intense uncertainty and speculation.
With the world cup draw now concluded, US president Donald Trump will shift his attention to the Federal Reserve’s own interest rate decision on Wednesday. Currency markets are extremely confident that will also result in a cut, a consensus that has caused a tricky period for the US dollar.
And there was big news in Hollywood to end last week. Streaming giant Netflix announced a whopping $83 billion takeover of Warner Bros Discovery, one of the heavy hitters in the world of cinema and television. Fans of Harry Potter, HBO programming and other crown jewels of the entertainment world may soon find their favourite content available on other platforms after a deal that sent shockwaves through the entire industry.
