With so-called ‘Blue Monday’ safely behind us – though I suspect it’s less grim if you have a fixed plan to retire abroad this year – and an exciting year ahead beckoning us on, do we feel optimistic about the pound’s fortunes? And do the leading banks?
When you consider what the UK appears to have got away with – the Omicron variant being considerably less severe than Delta, the sensational result of getting so many vaccine boosters into so many arms so quickly, and Brexit’s effects being, so-far, masked by the pandemic – it is no wonder that the pound remains some 5 or 6% above its post-referendum average.
Will that last?
Not everyone is so optimistic. Yesterday the CBI’s Business Optimism Index was -9 against an expectation of +5. This represents the lowest level of optimism in our manufacturing sector since the darkest days of the pandemic. Prices for manufacturers are rising at their fastest rate since the first year of Margaret Thatcher’s premiership.
There are also the obvious threats to life, wealth and business from conflict in Ukraine, where the law of unintended consequences may have been forgotten.
We might also be facing a UK leadership challenge in the next few days and – as suggested by the Prime Minister’s own supporters – a General Election if he falls.
So, if you were able to breeze through Blue Monday because you have big plans abroad this year, do seriously consider locking in this excellent rate with a forward contract, which you can do with a call to your trader on 020 8003 4915.
A final reminder too, of a couple of webinars we are sponsoring tomorrow, for those who are looking to buy a property in or retire to Portugal or Cyprus. You can register for your free pass here.
