The pound starts the week close to where it started out last week against the euro and US dollar.
That is still around 10% up on last year against the dollar and a little up on the euro, so perhaps worth fixing with a forward contract if you have a transaction you are committed to. You can do that with a call to your trader on 020 8108 5163, or just email them and they will call you straight back.
A final call too, for our autumn referral offer, which ends this week. If you can think of a friend, colleague or family member who might need our assistance, refer them to Smart Currency and as well as your usual £50 referral bonus for you and them if they trade with us, you’ll be entered into our prize draw for a £500 AirBnb voucher.
We are certainly coming into a risky period for data. From midweek, economic reports from the UK will be taking centre stage, with Gross Domestic Product (GDP) on Thursday, unemployment and earnings next Tuesday and inflation on Wednesday.
If British economic indicators are negative, you can expect the pound to weaken (although nothing is for certain), and we are seeing an inkling of that so far this morning.
There are also the ramifications of tragic events in Israel and the Gaza Strip, which could have an effect on global currencies if the oil price is pushed even higher. In such situations the US dollar is always the first port of call given its safe haven status and it’s difficult to see why sterling would be preferred to the euro in difficult times.
