If the pound was the weather, it would be the weather in Britain since the start of the year. Distinctly soft and soggy, especially against the euro.
However, this was not entirely unexpected. In our January to March Quarterly Forecast several leading financial institutions had it at some 3% lower than this by now. In fact its current rate is above the average prediction. So to lock in this rate for the year ahead, why not give your account manager a call? Smart remains one of the few currency services where you can talk through your plans with a real person.
That Quarterly Forecast gets worse for GBP/EUR by summer, by the way. That number again is 020 8003 4915.
Fortunately the weather is easier to predict than the financial markets these days and according to the forecasts spring is due to start on Wednesday. Will the sun shine on the pound too?
Last week ended on good news for the UK economy, with shoppers shopping, the government ending up with more of your money in tax receipts and UK business leaders feeling confident about their future, as measured by the purchasing managers index (PMI).
The bad news for sterling and your savings is that this may not be enough to stave off an interest rate cut from the Bank of England next month.
We’re now in a quiet period for high-level, market-moving data from the UK, but there is plenty happening elsewhere, and it looks doubtful that US Supreme Court’s ruling on Trump’s tariffs will be the end of the matter – they could even be worse for the UK.
So if you are committed to a large transaction overseas, do give your account manager a call.
