Sterling has continued its recovery, gaining roughly 0.5% against the euro since the start of the month and 1% against the US dollar.
The movements in currencies have been extremely hard to predict lately, influenced by bond yields, gas supplies, interest rates, ‘safe haven status’ and much else. Nevertheless, sterling has been the winner so far this week, and worth having a chat with your trader on 020 7898 0541 about locking your rate in with a forward contract.
Over the next 24 hours the data will be on more familiar territory, with Gross Domestic Product (GDP) tomorrow. Last month the economy shrank by 0.5%, but some slight growth is expected this time.
Before that we’ll see the ‘RICS House Price Balance’ – one of those arcane-sounding readings that’s actually very simple. They ask property surveyors if they think house prices will rise or fall next month and subtract the pessimists from the optimists. Maybe no great surprise that last month it hit a 15-year low of minus 68. Slightly better is expected this time around, but not much. That data will be out at midday today.
Tomorrow also sees US inflation, which can also affect sterling. If it signifies that the Federal Reserve must continue increasing interest rates, that could well be bad for stocks and shares globally and may damage sterling even beyond the GBP/USD pairing.
Lots to look out for then, or just fix your rate at a level that enables you to fulfil your plans and spend your time and energy on those.
A final call too, for Smart’s Airbnb referral bonus, which ends on Friday. With autumn finally arriving in London, a £500 Airbnb gift card sounds quite appealing. Read all about it here.
