Yesterday the pound hit its highest rate against the US dollar (except for briefly after the 2019 election exit poll) since May 2018. Against the euro the pound continues to go nowhere particularly fast, but did slip by half a cent early this morning to its lowest level for three weeks or so.
Looking at data releases this morning, German retail sales were higher than expected, rising 8.2% year on year, while Spanish tourist numbers are 87% down on last year. You have to feel that the two are related.
We are still waiting to see if the economic recovery, now in sight as the Pfizer vaccine has been approved, will be V-shaped or U-shaped, or whether a Brexit no-deal will send us all to L.
For property buyers abroad, in Spain in particular, we expect the recovery to be rocket-fuelled, as people with savings from all over northern Europe look for holiday homes in the south in a potential buyer’s market.
The pound’s slight slippage this morning could be a warning of its future direction, with multi-month or year lows possible if no deal is announced within days.
To lock in today’s rate, do call your trader on 020 8108 5337.
