The currency markets didn’t seem to know whether they were coming or going at the start of trading in 2023. The pound looked liked it had fallen off a cliff against the US dollar yesterday morning, but has climbed its way back up again rapidly this morning.
The picture against the euro was only a little less dramatic, and the pound has managed to hold onto most of the 0.7% or so gain it made yesterday, reaching its strongest since before Christmas.
Yesterday, manufacturing PMI (a good early barometer of UK industry) was better than expected, although the mood in the manufacturing industry overall in the UK is still distinctly negative. In the eurozone, on the other hand, just-released data suggests that parts of the Spanish and Italian and German economies are picking up fast
That disparity between UK and overseas economic recovery could be a key theme in early 2023 and if continued will quite possibly weaken sterling.
So do give your trader a call on 020 7898 0541 to discuss your options. You can of course lock in today’s rate with a forward contract, for the whole year.
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