The pound has shot up to its highest level since the spring following GDP data from the UK that took the markets by surprise. The UK economy rose by 0.5% in May, when economists had predicted a 0.1% fall.
That’s quite the turnaround, and has resulted in sterling strengthening against both the dollar and euro.
However, you shouldn’t read too much into one month’s data. Against the dollar it’s something of a dead cat bounce and only takes us back to where GBP/USD was on Monday.
Against the euro the rise is more spectacular, and as of this morning you’re now getting as many euros for your pounds as you were in late April. That’s well worth locking in with a call to your trader on 020 8003 4915.
There are many varied influences on the pound right now. The markets reacted well to the defenestration of Boris Johnson, but will be warily eyeing up the candidates to take his job through the complicated Conservative Party election process. There is also the issue of Russian gas and whether supplies will continue theough the winter, plus our old foe Covid and its possible resurgence in China.
We deal with much of this in our brand new Quarterly Forecast, which will be published TOMORROW. Do look out for the email. We are immensely proud of the analysis but wary of the currency predictions from major banks. It’s always worth a read.
For today though, do consider grabbing this resurgent rate while it lasts.
