August is a funny month isn’t it? The “dog days” when, in the height of summer, the heat saps the energy. But then the occasional chill breeze just reminds us that autumn is only weeks away.
It’s all a bit less cheerful than June and early July anyway. Speaking of less cheerful, the pound seems to be responding by burrowing itself away like a dog hiding from a thunderstorm.
We understand the worry that anyone with a serious currency transaction is experiencing right now. Do you fix your exchange rate now and suck up the 7-8% drop in the pound over the past three months? Or do you wait and risk the pound sinking further?
The fact is, there’s no right answer. It all comes down to Brexit and even the people running the government’s Brexit strategy don’t know if they can force Brexit through. It seems to come down to parliamentary rules, with Prime Minister Johnson’s strategist Dominic Cummings believing he can force through a no deal Brexit, if required, by calling a General Election for early November. Meanwhile “Peoples’ Vote” strategists, for want of a better word, say that can be prevented. There appears to be no definitive answer.
So what can you do? The short answer is to focus on what you can control and do understand – your own plans – and lock in the rate that allows you to do that. Our feeling is that the risk of the pound sinking further cannot be ignored. If you can possibly continue with your plans at today’s exchange rate then you should do so, with a Forward Contract.
Call us today on 020 7898 0541 to talk to your trader. Once you decide on a course of action, you can look forward to an Indian summer planning your life or holiday home abroad.
