The pound strengthened against the euro yesterday on news that something didn’t happen and something will happen in about 10 years time.
What didn’t happen was the economy shrinking in the last quarter of 2019, as had been expected by some in the chaos of prorogued parliaments and potential no deal last autumn. Remember that? It all seems a long time ago already… The even better news was that the economy grew in December, suggesting that economic growth is quietly building up a head of steam.
The pound also reacted well to the announcement of HS2 going ahead – due for trains running in about 2030 – and what this might say about further fiscal stimulus in the Budget, now less than a month away. The new railway line may cost a lot and involve homes being demolished and ancient woodlands cleared, but those of us who remember our O level economics will be excited by the multiplier effect working on the £106 billion projected cost.
If you’re in line for a share of the £106bn, either from your home being buried under a railway line or because you have shares in an engineering or steel company, maybe spending it on a property abroad would be nice?
Today’s exchange rate may be riding high, but it’s about as reliable as a Southern Rail timetable and could easily be derailed in the weeks ahead. Johnson’s honeymoon cannot last for ever.
You can lock in today’s excellent rate with a forward contract for the year ahead. Why not have a chat with your trader on 020 8108 5337.
