Tomorrow will be an interesting day on the currency markets as we all tune in to the Bank of England at high noon for the pronouncement of its Monetary Policy Committee on interest rates.
Will they cut or will they keep them on hold? Predictions are split more or less 50-50, but opinion seems to be swinging behind keeping rates on hold, which would be likely to boost the pound. Some positive economic data at the end of last week suggests that there is growing confidence in the UK economy.
We certainly believe in big ambitions at Smart, but also in protecting yourself just in case. Many of our clients are planning a property purchase abroad this spring or summer, and right now they can have very little idea of where the pound might might move. You can see how far these could move in our latest Quarterly Forecast, which is free to download. When putting large sums of money at the mercy of rapidly moving exchange rates, is hoping for the best really a good policy?
That is why we usually recommend taking out a forward contract. It locks in your exchange rate for the stormy year ahead.
Why not give your trader a call today, in advance of the interest rate decision. The number is 020 8108 5337.
