Worries over the impact of coronavirus on the UK and global economy pushed the pound down to a five-month low against the euro yesterday. Although the same fears are circulating in the Eurozone, the euro is currently being helped as it is a ‘funding currency’ investors borrowed in to buy stocks they are now selling. The pound has recovered slightly overnight.
Tomorrow, we will see the UK budget, with expectations of headline policies including the raising of the National Insurance threshold. Later on this month, the markets are pricing in a rate cut from the Bank of England.
Slumping oil prices and treasury yields weakened the dollar against the pound yesterday, and US stocks dropped nearly 7%.
You can still make safe transfers in this environment of market volatility. Simply lock in a fixed exchange rate for up to twelve months, so you know exactly how much your money will be worth, without trying to second-guess or play the markets.
Find out more by contacting your Personal Trader on 020 7898 0541 about a forward contract today.
