For currencies it’s going to be an interesting week. Sterling is still holding up well for the time of year, as recent third quarters have seen it suffer. On Brexit talks, as no-one has any real idea of the UK government or EU’s propensity for a no-deal, traders are unwilling to bet either way.
We have a relatively quiet week ahead for economic data – so more attention will be focused on business results for signs of a V-shaped, or at least “bird’s wing”, recovery. For currency traders the big event of the week is in the US, with a major economic symposium normally held at Jackson Hole. Central bank leaders from the US, UK and elsewhere will be outlining how they intend to deal with the current crisis from a monetary policy point of view.
On Covid, with schools due to go back next week we’re reaching a crunch point in the coronavirus “lockdown”. Despite there still being a thousand or so new infections each day in the UK, to a large extent social distancing seems to have gone out of the window. Certainly to judge by our local high streets this weekend anyway.
There was some discussion at the start of the lockdown over how long people would tolerate social distancing, and the general view from NHS chiefs and the government was, “not long”. Although the publicity campaigns worked even better than expected, the end of summer is a new chapter entirely. If schoolkids go back full time, so can their office-worker parents.
It’s also crunch time for those Britons aiming to get residency in the EU before the end of the transition period – especially with no deal very much still on the table. They will have to make a difficult decision whether to cut loose and just go to Spain and France; or sit at home and miss the boat. The far lower fatality rates will have decreased the worries for many of us, with rates similar to normal flu seasons in most countries. There is also, of course, far less risk of catching things like flu.
Do check out the latest travel situation at Property Guides, (or if you have a friend keen to move, send them a buying guide), but the evidence from our people in France, Spain, Italy, Cyprus, Greece and Portugal is that not only can you travel there easily, but you can do any of the usual business and bureaucratic processes you need – albeit wearing a face mask.
If you are making the break, talk through your currency needs with your trader on 020 8108 5337. And you can lock in today’s excellent rate against future volatility with a forward contract.
