The pound hit its highest level against the euro since June 2016 early this morning.
Against the US dollar, on the other hand, it has reached its lowest since November 2020.
Will the pound stay where it is, or go higher or lower? Reading various analyses of the currency markets right now, it’s clear that nobody knows anything.
In his book Adventures in the Screen Trade, legendary screenwriter William Goldman, who in all his movies never came up with a more charismatic character than President Zelensky, points out that even among the most experience Hollywood execs, “no-body knows anything… Every time out it’s a guess”.
The same is true of the currency markets at the best of times and especially now.
So today represents an opportunity to lock in an exchange rate that is 6.5% better than the five-year average and 14% above its lowest.
There is a lot that can knock the pound off its perch and see it struggling against EUR like it is against most other major currencies, where it is between 2 and 5% weaker than this time last month.
We are ten days away from the next meeting of the Bank of England’s Monetary Policy Committee, so data such as house prices (today) and GDP (on Friday) will be studied carefully.
To lock in today’s best rate for nearly six years, call your trader 020 8108 5163.
