The pound strengthened to its highest against the euro and US dollar for over a month yesterday. Although it has slipped back a little since then, it’s still a positive sign when you consider we were knocking on the door of parity against the euro, and the lowest GBP/USD for 35 years just a couple of weeks ago.
Nothing can be taken for granted, however, in this very strange world, and forecasters from some leading banks are predicting GBP/EUR parity and below in the next three months. You can read about that in the new set of quarterly forecasts that we are releasing tomorrow (don’t worry about missing it, you’ll get an email).
If the situation were not so serious it would be comical to imagine intelligent people in expensive offices (okay homes) in London and Frankfurt trying to work out what will happen to GBP/EUR in three months time. They have as little idea as you or I. But we do know that this looks like a pretty good rate to lock in if you are making a trade over the summer or autumn. It is now above the average for the past three years.
You can secure today’s rate with a forward contract, or transfer money today with a spot contract.
Back on the home front, we’re continuing to find that working remotely can be just as effective. It’s not quite as much fun, it’s true, and we are especially missing the events we would have been attending this spring. The team and I miss the energy and inspiration we get from meeting our clients face to face at events like Your Overseas Home.
However, we are doing all sorts of webinars and other online chats, so do please stay in contact with your trader on on 020 8108 5337 to see how we can help you, or read the emails they send out regularly.
We remain here to help you, or your friends and colleagues with currency needs.
