It could be a case of the calm before the storm today, with no economic news to move the markets until tomorrow.
The pound weakened against the euro during the latter half of last week, following three weeks of gains. Even so, it is a couple of percentage points above where it spent the start of the year and the five year average.
It has also perked up a little this morning, perhaps because of a positive report on the UK economy from the EY Item Club, which said that the UK would miss recession, with inflation below 4.5% by the end of the year.
From tomorrow there is plenty of data on the state of the economy with the power to affect your exchange rate. That starts with unemployment tomorrow, then inflation on Wednesday and consumer confidence and retail sales data on Friday.
The major worry is if the data, especially the anticipated fall in inflation, doesn’t materialise over the coming months. Then sterling could well suffer. Therefore, if you are committed to an overseas transaction, you should certainly call your trader on 020 8108 5163 and talk to him or her about fixing your rate before that all happens.
If that transaction involves a property purchase abroad, I have some very exciting new for you.
We’re less than a month away from the international property and moving abroad show that Smart Currency sponsors. The Your Overseas Home Virtual Event features not just estate agents showcasing their best properties in Spain, France, Italy, Portugal, Cyprus and Greece, but also the experts you need to make the purchase safely and successfully. Such as property lawyers, visa specialists, IFAs who are regulated to work in those countries (most UK-based IFAs are not), health insurers and many others.
Get your ticket for the Your Overseas Home Virtual Event here.
