When the exit poll came through from France last night, showing that Europe has avoided a far-right government at its heart, the wind went out of sterling’s sails as the euro strengthened.
Those gains have been pared back since, especially against the US dollar where the euro is at a lower level than Friday.
For sterling, Friday was disastrous across the board – and especially against the US dollar – and it is difficult to know where sterling’s decline will stop. It’s still worth bearing in mind, however, that for now it is well above the average of the past few years.
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Against the US dollar, sterling remains at its weakest since September 2020. After the economic disappointments of Friday, when both consumer confidence for next month and retail sales for last month crashed, today’s data from the CBI looks like the main event of the week.
Also of interest will be governor of the Bank of England Andrew Bailey’s speech on Thursday.
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Our phones are very busy with people off on viewing trips for property abroad (see a webinar on how to do an effective viewing trip here), and booking forward contracts for property they’re making an offer on, so do get organised before you even speak to an estate agent abroad if at al possible. Currencies are highly volatile right now and you don’t want to be in a panic when the home of your dreams suddenly appears.
