Sterling has bounded into April with some enthusiasm, hitting its strongest since last June against the US dollar and over 13 months against the Australian dollar.
The advance against the euro was rapidly pulled back but GBP/EUR is still close to 1% better than this time last month.
To lock that rate in with a forward contract, do call your trader on 020 7898 0541. It wasn’t based on anything particularly tangible and so could disappear again as quickly.
If it was based on the UK doing better than expected and avoiding recession, the same could be said with bells on for parts of the EU. Just this morning so far German factory orders are revealed to have shot up to their highest level for nearly two years, and Italy and Spain have just released much better than expected PMI results.
This is a period to beware of. While the UK is closed for several bank holidays, the rest of the world, including the currency markets, may not be. On Good Friday, for example, much of the US is still working and there are data releases such as non-farm payrolls which could easily be moving the market while you’re busy with a hot cross bun. It is definitely worth ensuring you’re protected from currency risk over this period.
Have a pleaseant Easter break.
