The optimism that emerged on Friday has turned to bitter resignation after another wild weekend of headlines. Hopes of an end to the energy crisis were dashed by Iran’s insistence on “strict control” over the vital oil waterways, while Sir Keir Starmer faces a week that could decide his political future.
Any number of things could happen this week, all of which might impact your budget. You could of course gamble that exchange rates move in your favour, but that is incredibly risky at the best of times, let alone during a global energy crisis and amid political drama in Westminster. To stop gambling along with the market, lock in today’s rate with a forward contract. Our expert team will be glad to assist you – just call 020 8003 4915.
Much has changed already since Friday’s surprisingly strong GDP report, which showed the UK economy had expanded by more than expected (0.5%, to be exact) in February. It could all change again by mid-week, with our first peek at the post-war inflation data set to arrive on Wednesday morning.
Amid all this, Sir Keir Starmer is facing what government insiders are terming “judgment day”. The prime minister will appear in parliament today after the scandal over Peter Mandelson’s appointment as ambassador to the United States. The man at the centre of the scandal, the Foreign Office’s Sir Olly Robbins, will then give his side of the story tomorrow.
UK diesel and petrol prices had finally begun to fall in response to the more positive news out of the Middle East. The prospect of that continuing in the coming days now looks highly uncertain.
There’s political risk, economic risk, as well as geopolitical risk aplenty this week. Can the pound emerge unscathed given the scale of the challenges ahead? The honest truth is that nobody knows.
