The pound begins the week around 1% stronger against the euro compared to this time last week and fractionally lower against the US dollar.
You’d have to call that a muted response to Prime Minister Boris Johnson’s long-awaited address to the nation on Sunday evening. Normally the currency market reacts positively to almost any kind of certainty, but even those predisposed to feelings of goodwill towards our recovering PM were left scratching their heads last night.
No doubt all will become clearer as to what we can and cannot do in the days ahead, and we can at least chat about it to a member of our household while having a picnic in the park or a socially-distanced round of golf with a friend, in England, or something…
At least the plan offers some kind of hope. A better slogan than “Stay Alert” might have been “Save our Summer!” Many of us would give up even more outdoor freedom now to be sure of being able to travel to a Greek island or Spanish costa in August.
It is remarkable how effective the lockdown has been in Mediterranean countries, with places like Cyprus, Greece and Malta barely affected at all. Italian and Spanish islands such as Sicily, the Balearics and Canary Islands are also largely virus free, yet still with more draconian rules in place than we have in the UK.
For now, the UK is not on the list of those first countries where they may be willing to receive flights from as they try to salvage their summer seasons. But our continued lockdown, if it works, does offer hope that we might be by August.
The Stay Alert slogan certainly works for those with a currency transaction in the offing. There is nothing especially rational about the markets right now, so why not chat about your requirements to your trader on 020 8108 5337?
We are all working normally and gearing up for a busy summer.
Do enjoy your new, limited, freedom.
