The pound has weakened by around 5% over the past week against the euro and by more than 10% over the past month. So far this morning sterling bounced back a little, but this turned out to be a “dead cat bounce” (a so-called technical term courtesy of the City!) as it has since fallen even further to its lowest since last August.
It goes without saying that we’re in unprecedented circumstances, with the coronavirus closing down so many aspects of normal society. What a day for the new governor of the Bank of England Andrew Bailey to start work. It seems unlikely that the BoE will follow the US Federal Reserve into another emergency interest rate cut, as in the UK our base rate is already lower.
It’s safe to say that no-one knows where the pound will go over the next few weeks, especially with the UK taking such a different approach to other countries in its approach to the virus. Either way it will clearly last for months rather than weeks.
From our point of view, we know that with much of normal business stopping, including almost all international travel and tourism, movements of currency will be different to normal.
However, people will continue to need access to money in different currencies, so our technical team have been working incredibly hard over the past week ensuring that it is business as usual for us. That will continue in any realistic circumstances to come. Our traders and support staff will be working as normal from 8.30am to 6pm every working day.
Therefore, if you need to transfer money abroad, perhaps to support loved ones abroad or those with businesses suffering, do give your trader a call on 020 8108 5337. We have a range of ways to help you, including regular payment plans.
