After weeks of chaos to begin 2026, the pound settled into something almost resembling calm yesterday. The pound to euro rate has ranged by a little under half a cent since Monday as the threat of American tariffs on Europe receded. In the UK, Sir Keir Starmer’s decision to block Andy Burnham from returning to parliament also seems to have averted a revolt, even if the fragile peace is unlikely to hold beyond May’s local elections.
Still, that calm can shatter in an instant. Nobody can truly say what will happen next, which is why the best course of action is to lock in today’s rate and guarantee the price you’ll pay at competition, whether that’s three months, six months or 12 months down the line. Call our team on 020 8003 4915 today to protect your money.
While things are settled on these shores, you need only look to the once all-powerful US dollar for an idea of how quickly that can change. In just under a week, the US dollar has weakened by almost five cents (around 3%) against the pound. Fears around the Trump administration’s erratic approach have snowballed into larger questions about the dollar’s safe-haven status. Those rumblings coincided with some shaky household data yesterday as we learned consumer confidence plunged to a 12-year low.
The dollar’s loss has been the Swiss franc’s gain. Investors have flocked to the ‘last reliable safe-haven’ currency, boosting the franc to a ten-year high.
In other news, government ministers announced plans to ease the cost-of-living burden by capping ground rent charges on leasehold properties at £250 per year. That move came after friction between the prime minister and his chancellor over the impact on investors like pension funds, which typically hold large portfolios tied to property.
The European Union (EU) has sealed a trade deal with India after 20 years of negotiations. Playing the mother of all long games, the deal reduces tariffs on a number of industrial goods to zero and is expected to double EU exports to India over the next six years.
There is still plenty of news that could impact your budget between now and the weekend. The US dollar’s fate will be closely watched ahead of the Federal Reserve’s interest rate decision tonight. Tensions are again rising in the Middle East, while the pound could be affected as investors look ahead to the Bank of England’s interest rate decision next week.
