The pound has started off the working week in a broadly positive mode, strengthening against most other currencies this morning, albeit remaining a percentage point or so below last month.
Given the economic and political uncertainty at the moment, that’s about the best we can hope for.
The last time sterling strengthened unexpectedly was when a no confidence vote was announced for Boris Johnson’s premiership, the markets hoping that another leader might take a more conciliatory approach to the EU re the Northern Ireland protocol. Hence the disastrous (for his party) byelection results last week could be supporting the pound.
GBP/EUR was also supported by continued lack of enthusiasm from the ECB for faster interest rate increases than are currently planned.
This week there is little data to speak of in the UK, but plenty from the EU side. That starts with Gfk Consumer Confidence for Germany tomorrow morning, and inflation data through the week.
With so much happening in the world right now that has the potential to affect your overseas budget, do talk to your trader about locking in the rate today. Your trader is available on 020 8108 5163.
