Sterling starts Monday close to its weakest against the euro in two years. After another week of uncertainty, the uncomfortable truth is that things might have to get worse before they get any better.
As we’ll explain in a moment, there is a very real chance that the pound weakens even more between now and Friday. We therefore strongly advise you to lock in today’s rate to protect your money. To contact your personal account manager and get this set up, just call 020 8003 4915.
But first, a look at recent moves in the sterling/euro market. Had you bought a €300,000 home on Friday, you would have paid £4,000 more than at the start of September, and almost £10,000 more than if you had bought at the start of June. Things change fast in the word of currency and these sharp movements we’re accustomed to will not always be in your favour.
Much like the Halloween revellers on the hunt for sweets here in Hammersmith, there is the risk of pulling out something disappointing from this week’s currency bucket. The Bank of England will make its latest interest rate decision on Thursday in a move with big implications for your budget.
Most are expecting interest rates to stay at 4%. However, the decision is very much in the balance. There is a decent chance that the Bank decides to cut rates to 3.75% to boost growth and the hiring market, a scenario that could lead to more weakness for the pound.
This week looks quiet from a data perspective, but markets will also be keeping an eye on the US government shutdown, soon to become the longest in American history. The first murmurings of compromise are spreading and any change in this status would likely mean big swings across key exchange rates.
