The pound has started the day very much on the downturn this morning, but if you’ve been googling news on sterling, today probably isn’t the day to do it.
England’s victory over Germany (goals by Sterling and Kane), might have been a reason for GBP/EUR to move positively today as a feel-good factor sweeps the nation. However, it is probably slightly disappointing GDP data that has caused this morning’s slip.
Also potentially moving the market over the next couple of days could be sausages (the Northern Ireland protocol prohibits cold meat imports, but a compromise looks likely) and the Labour Party’s attitude to Palestine, which is a factor in tomorrow’s by-election in Yorkshire and could lead to an unlikely Conservative Party victory.
The currency markets can take the most random-seeming information and weave it into a picture of the mood and outlook for the country. However it is mainly economic data that moves the market and the biggest debate right now is about whether the Bank of England or European Central Bank will move first in raising interest rates. If the Bank of England then sterling should strengthen and if the ECB then the euro should strengthen.
At Smart, however, we believe that your life abroad, holiday home investment or retirement to the sun should not be influenced by either sausages, Raheem Sterling’s right foot or central bankers.
So to lock in today’s rate with a forward contract so you can move ahead with your property purchase abroad with confidence, do call your trader today on 020 8003 4915.
