There was a flurry of excitement overnight as the pound shot above €1.20 following the latest good news on UK jobs.
I did say on Monday that it was a week to keep your wits about you – so well done if you managed to lock it in. It remains 5 or 6% above the five year average.
This resistance level is proving a hard nut to crack, and if today’s data can’t push it over the line, you really might think it time to secure your rate with a call to your trader on 020 8003 4915 so you know exactly what you’ll be paying abroad in 2022.
The data should be supporting the pound. UK inflation has this morning been recorded at its highest since John Major was Prime Minister. The government is about to relax lockdown rules even further as the Omicron variant begins to be defeated, and the UK economy is recovering well.
And yet the pound is struggling to push ahead. Threats to GBP strength include a resurgent German and European economy too, as shown by the astonishingly positive ZEW Economic Sentiment Index yesterday.
Other threats include the possible defenestration of an expansionist, big-spending PM to be replaced by a small-state fiscal conservative, and a war looks possible in the far east of Europe. None of these are likely to support sterling.
On a happier note, if you’re looking to buy a property or move abroad this year, do check out the latest webinars from Your Overseas Home, which we will be appearing in.
