The pound has strengthened again this morning and is currently at its strongest against the euro since April.
Against the US dollar, however, sterling remains around 6% weaker than it was in April.
To be frank, sterling may go anywhere this week and this could be an exceptional opportunity to call your trader on 020 8003 4915 and secure the euros for your future plans with a forward contract.
Tomorrow is the Bank of England’s decision on interest rates, with the expectation rising of a 0.5% hike. This would represent the largest single rise for 27 years and has given rise to sterling’s support.
However, this is not certain to happen, risking as it would the country going into recession. This has happened in the USA following the Federal Reserve’s aggressive interest rate rises.
Taking a keen interest will be the Conservative Party leadership candidate currently most likely to take over as prime minister. Liz Truss has questioned the role of the Bank of England in setting interest rates, and sending the country into recession to welcome her arrival could be just the kind of thing to upset the financial applecart.
For those who’s near-term plans are more focused on retirement abroad or a new holiday home, guessing where the exchange rate will be tomorrow afternoon is impossible, let alone by the autumn, or next spring.
We expect to be extremely busy over the next 48 hours, so do perhaps make a call to your trader sooner rather than later, or you could miss this exceptionally high rate.
