The pound continues to bubble away close to its hottest point against the euro since the start of 2023. Which, bearing in mind that we’re only a week away from the start of summer, is quite impressive and quite possibly worth locking in with a forward contract.
Do call your trader on 020 8108 5163 to discuss that option.
This is a big week for the British economy. On Wednesday we will hear if inflation has finally started falling. Not like last month, where it went from 10.4 to 10.1%, but by something really significant. The expectation is a fall to around 8.4%, based particularly on energy prices falling. That’s still four times the level the government wants it to be, but should nevertheless allow the Bank of England to abandon ‘quantitative tightening’ and put interest rate rises on hold.
That could hit the pound negatively, which is why we would, with apologies for the jargon, urge those with currency exposure to de-risk their position. If you’re mid property purchase, for example, every drop in the strength of the pound will add thousands to the price of your property unless you have locked in your rate.
Also this week, aside from inflation, is the purchasing managers’ index (PMI) from S&P Global/CIPS. This is a measure of how optimistic business managers are about prospects for their business in the year ahead, as measured by, for example, hiring intentions, investment and so on. Since tomorrow the same data will come from the German, French and eurozone economies, as well as the UK, this too has the potential to move the market.
Do, therefore, seriously consider your position and your trader will be there to help, guide and discuss your plans.
