After two weeks of relentless falls it was heartening to see the pound ending Tuesday more or less where it began the day. It’s certainly a good time to be changing money back to sterling, with the best rate since last August.
You may have seen a message doing the rounds pointing out a few bits of positive news, including things getting back to normal in China. And it’s true: Apple is re-opening all its stores there and the hospitals they rapidly opened to cope with the crisis are already closing down as new cases dry up. We’ve also heard about new medical advances already coming along.
So after the last few days panic, maybe we will see a recovery earlier than we hoped. It will be fascinating to see if the lockdown that our European neighbours are trying out, effectively locking people up in their own homes, works. We will know very soon.
The pound could easily slip further, however. What the currency markets fear is that Andrew Bailey, the new governor of the Bank of England, will restart a process of quantitative easing in order to rescue the economy.
In the meantime the Chancellor of the Exchequer has announced a package that could amount to £350 billion – albeit in loans and guarantees rather than cash. The Chancellor Rishi Sunak, also a newcomer to the job, has brought some much-needed confidence and credibility to the government’s approach. If this is a war against coronavirus and if Boris Johnson feels like it’s his destiny to be a new Churchill, maybe Sunak can be his Clement Attlee, quietly ensuring that things keep going behind the scenes.
We are also working hard behind the scenes, fully staffed and ready to take your call. So do please call your trader on 020 8108 5337 to discuss your ongoing strategy.
And if you’re stuck at home, at least you can be planning your next move when the crisis is over. Do read our guide to currency transactions for a property abroad, written by our traders and packed with insider tips. You can download The Property Buyer’s Guide to Currency here.
With all best wishes
