Many Europeans will be jetting off to the sun this week, with flights between Germany and the Balearic Islands and from many more countries into Greece and Italy.
In the UK, EasyJet’s first flight from Gatwick should be landing in Glasgow around now, while “non-essential” shops open today as well. So at least we can go and buy a guidebook and all the wet weather gear that is normally required for a holiday in Glasgow. (You can’t actually go on holiday within the UK until 4 July, mind you).
Although we may look at the UK’s dreadful infection rates over the past three months with dismay, we are on the same trajectory as countries like Italy and Spain and can look forward to new cases being down to a handful within weeks.
By the time we can fly to the sun again, it seems increasingly likely that sterling will have weakened significantly. The problems are mounting up. If the British government is bluffing on its insistence that the UK won’t be requesting an extension to the transition period, you have to say that it’s very convincing. Hence the pound has steadily weakened in early trading this morning by more than 1%
Sterling usually follows global stock markets and these are expected to fall in coming days, as the US and China face increasing cases of Covid-19. Against USD the pound has weakened by less than 1% in the past week.
Things should move quickly in the next few weeks. New flights will restart every day across Europe, with Spain’s borders opening in two weeks’ time.
With warnings of GBP/EUR heading down to historic lows – as much as 10% below today’s – if you’re among the 35% or so of our clients who are determined to buy a property or move abroad before the Brexit transition period ends, do please call your trader on 020 8108 5337.
A forward contract, that locks in today’s rate for the year ahead, thereby removing currency volatility from your worries, looks like a highly attractive option.
