Sterling has been buffeted in recent days by a mixture of poor economic and political news, from rising energy costs risking food supplies, to a warning from President Biden that the UK is, indeed, at the back of the queue when it comes to a trade deal, to the rise of the Delta variant of Covid.
That has all helped to see sterling slipping marginally against the euro and quite severely against the US dollar.
On the other hand, there is good news too. Covid cases overall appear to be falling again – though university Freshers Weeks won’t help – and company order books are more full than ever, according to the CBI yesterday. We are also allowed to fly to the USA again, which even if you don’t have any desire to go there, has to be a positive sign.
Working through the data today will be the brightest economic minds in the land, the eight members of the Bank of England’s Monetary Policy Committee, who will be meeting to set interest rates tomorrow. No change is expected in the rate this month, but the vote and the minutes of the meeting will give a clearer steer on the MPC’s thinking for the months ahead.
There could, therefore, be sharp movements in the pound tomorrow.
We may come to see this as a golden period, before the furlough ends completely, the trains get packed again, tax increases kick in for earners, higher interest rates for borrowers (although most of our clients tend to be savers, so better news there perhaps) and winter, of course.
How much better it will all feel if you have an overseas property to look forward to owning. If you are planning a trip to view properties, or scoping out locations for a retirement overseas, do call your trader on 020 8003 4915 to discuss what today’s exchange rate means for your budget, and how to lock today’s rate in for complete peace of mind when you commit to buying.
