The pound is continuing to dance along at around its highest rate against the euro for the past three years. Indeed it’s rarely been above this rate consistently since just after the Brexit vote.
It’s like the final weeks of Strictly Come Dancing where everyone’s getting near maximum marks and can you really say that Emma and Anton’s Charleston was worse than Kelvin and Oti’s American Smooth? If you’re planning a serious transaction overseas in the year ahead the euro today looks like an excellent dance partner. You can be very happy to take it to the ball.
But will it go higher? A Conservative victory hasn’t yet been priced into the value of the pound, and the the latest polls show that the Conservative rise has leveled off. Meanwhile, Labour’s stock is still rising, but at 11 points behind you do wonder where it might get those extra votes from in the next eight days.
Could they come from bored Conservative voters staying at home? Boris Johnson said last week he was worried that Conservative voters were losing focus and forgetting what the election is really all about – Brexit. The Liberal Democrats and the Brexit Party, whose poll ratings continue to fall, would probably say the same.
So could Labour’s extraordinary promises of cash giveaways – this week, a third off rail fares, last week an average payout of over £15,000 to women born between 1955 and 1960 who lost out in pension reforms – be starting to cut through?
It’s certainly a lot of money promised to a lot of people – yes, thank you, I know the counter-arguments! – and could easily prove tempting in the voting booth, just as low taxes have always tempted Conservative voters in election after election.
So it will be an interesting few days. There are also other potential factors, such as the weather in mid-December, that could bowl a googly. Either way, by the time we settle in for the final of Strictly in 10 days time, or switch off the TV and plan our escape abroad, the pound is unlikely to be where it is today.
We are extending our opening hours to 8am to 8pm on Thursday 12 December and from 6am to 7pm on the results day, Friday 13 December.
But why not call your trader before then on 020 7898 0541 and lock in today’s high-stepping rate via a forward contract.
