The pound has been trading in a fairly narrow band over the past week, paring back swings of 3% over the previous three weeks against the euro but currently relatively strong. It has weakened by half a percentage point in early trading against the US dollar.
Looking at other financial measures, the recent rise of global stock markets has been described as “hysterical”; a bubble that will soon burst. Others see it as a perfectly rational development as financial markets grasp what so many are failing to imagine, that while we are currently in then very worst period of the pandemic, the world will rapidly return to normal when mass vaccination programmes start and health services have recovered.
Or rather, not just normal, but better. The boom in tech stocks – with Tesla eight times higher than this time last year – is surely a recognition that the lockdowns have unleashed a million great ideas and a willingness to try new ways, alongside the many tragedies of the pandemic.
Perhaps the beginning of the end of the great Brexit debate and the fall of Trump will engender a new spirit of global co-operation too. We can certainly hope.
At Smart and our partner businesses, there are clear signs of a public clamouring to make 2021 special. Registrations for webinars on Buying in France and Spain after Brexit from our partner Your Overseas Home next weekend have never been higher – you can register for the free webinars yourself here.
It is, as ever, impossible to say where the pound will be when matters return to normal in a few months. We are busy writing our new Quarterly Forecast and the range of opinions is as wide as ever. Look out for them next week.
In the meantime, do contact your trader on 020 8108 5337 to discuss locking in today’s rate. These are pivotal times and sterling could move significantly.
