Last week was one in which the pound started at over €1.20, crashed by over 2% to below €1.175 over the course of three days and then settled at halfway between the two.
There was even a brief spike yesterday evening which was probably caused by a computer glitch, or ‘algorithmic’ trading.
Against the US dollar, the pattern was similar but less pronounced.
This is all typical of nervy times in the currency markets where any piece of news could send the pound crashing.
That could include, today, speeches by three important members of the Bank of England’s Monetary Policy Committee (MPC). The pound weakened after the last MPC meeting, following signs of a more dovish stance being taken on interest rates. With no MPC meeting until 5th May the markets will be listening to their words rather than actions for another four and a half weeks.
The rest of the week is relatively quiet for data, both here and in the eurozone and US.
There is plenty still to move the market, however, including the appalling news from Ukraine and the effect this might have on any peace deal vs even tighter sanctions. Or economic news, such as staff absences meaning that easyJet has had to cancel 100 flights today alone.
If you’re stuck at home rather than going on a viewing trip, you can still watch all of the seminars on buying property abroad, via Your Overseas Home, here.
Buy do talk to your trader on 020 8108 5163 with a view to fixing your rate at this turbulent time.
