The recovery in the pound at the end of last week took the markets by surprise. Over the past three weeks the pound has weakened by around 10 to 15% against both EUR and USD, but then gained at least half of that back.
This is despite the UK’s credit rating being downgraded by the ratings agency Fitch, from AAA to AA–. Their basic worry seems to be how determined the government will be to pay back the vast amount of money it is borrowing to weather the crisis. Will the British public be willing to endure another round of austerity, and how will Brexit affect all that?
At Smart we’re very pleased at how the first week of social isolation went. All our processes are working perfectly and the team is working hard, and unlike most businesses we are now opening for longer hours, starting at 8am. The huge number of 5-star reviews we’ve had in the past week on Trustpilot has certainly made me very proud.
With the markets moving around so rapidly we appreciate that many businesses and individuals who are committed to international payments – not everything has stopped due to the outbreak by a long chalk – are in a very difficult position. What do you do if your overseas costs or income moved 15% one way last week and then 5% back the other way this week. Where on earth will they be next week?
No-one knows, which is why fixing a forward contract makes so much sense. If you fix it at a rate where you can meet your obligations then at least it’s one worry off your mind and this feels like a time to lock down what you can.
Do please call your trader on 020 8108 5337 to lock in today’s much improved rate.
And if you know of any business or individual having problems with their currency right now, or who might need talking through their options, do head over to our referrals page; it’s very simple.
Best wishes
