As August kicked in, the pound lost some of the gains made at the end of July, particularly against the euro. However, it is still relatively strong against the dollar, which continues to suffer due to rising infection rates and worries over the US economy.
The Bank of England’s monetary policy meeting tomorrow could see some movement for the pound. Whilst it’s expected that interest rates will be kept on hold, any changes to the quantitative easing programme and forecasts of economic recovery could have an impact on the pound. Equally, any suggestion that rates could be cut in the near future is likely to have an impact.
Despite this, Brexit remains the main driver for the pound. In the absence of any negotiations, news is sparse at the moment. However, reports that a new timetable has been set out for the next rounds of negotiations has provided some optimism. There has also been talk of the European Union softening its demand that Britain follow EU state aid rules after it leaves the bloc, in order to break the Brexit impasse. Any reports suggesting that a deal can be reached are likely to benefit the pound.
With things returning to normal, you may be looking to transfer money overseas again, perhaps to purchase a home abroad or for any regular payments.
This is also the first summer in a while that you will get any activity from French, Spanish, Italian and Portuguese property professionals (estate agents, lawyers, notaries etc), many of whom are not talking their usual August vacation.
If you wish to take advantage of this strange summer to secure your future, do call your trader on 020 8108 5337.
I’d also strongly suggest speaking to your trader about a forward contract, to ensure that your money is protected.
