Another Monday morning and another positive movement for the pound, not only against the euro but all major currencies.
This morning’s boost is little over 0.2%, however, (so far anyway) compared to the last few Monday mornings when sterling has been given a leg up of between 0.5% and 1%. An indication that the vaccine advantage is running out of steam, or just worries over the Indian variant?
This will be an interesting week. If you’ve been reading our currency notes for longer than six years you may remember a time before the pandemic, before Frost vs Barnier, before Theresa May’s deal, before Jeremy Corbyn’s Labour Party, before Brexit, before even David Cameron winning the 2015 election, when economics was the driver of exchange rates.
We may be back there again, as all eyes focus on the economic rebound from Covid-19. This week we have a mass of data coming through the wires. Tomorrow it’s employment and earnings, Wednesday is inflation and industrial prices, while Friday is a bumper day with consumer confidence, retail sales and first results for the purchasing managers’ index (PMI), which is seen as a very good indication of business optimism.
Speaking of optimism, today we have one of the last speeches by the Bank of England’s chief economist Andy Haldane before he leaves next month. His bullish attitude to the UK’s release from lockdown has encouraged positivity around sterling, so we will see if the mood changes.
For now, as flights take off to Portugal once again, sterling is trading at around its very highest levels since the referendum five years ago against both the euro and the US dollar. To lock this rate in with a forward contract, do call your trader on 020 8108 5163.
Incidentally, if you have been reading our messages for five of six years and think it might be finally time to make the move, do download The Property Buyer’s Guide to Currency, which you’ll find a link to below.
