Sterling has managed to hold onto most of its gains against the euro into the last couple of days of February. The decline against the US dollar continued last week and GBP/USD is some 3% weaker than the start of the month.
This is despite our old friend ‘Brexit negotiations’ re-emerging as a factor, with what looks like a deal to be announced today over Northern Ireland’s trading relationship with the Republic.
GBP/EUR has also continued to be supported by positive news for the UK economy last week.
To lock in this rate, please call your trader on 020 8108 5163 and discuss the benefits of a forward contract in such uncertain times.
That’s especially important if you’re seeing the start of March as your opportunity to head off and buy an overseas home. On which point, a quick reminder that Smart Currency will be at the virtual (i.e. all online) property event Your Overseas Home on Saturday 25th March – get your free e-ticket here.
While this week is going to be a little light on data from the UK side, there is plenty of talk from the members of the Monetary Policy Committee (MPC) of the Bank of England, which could affect exchange rates. Last week the words of one member, Catherine Mann, outlining her view that interest rates must continue to rise, helped keep sterling supported. This week she will be speaking again, as are several others of the nine-member panel, including the Bank of England governor himself, Andrew Bailey. What they say could influence sterling this week.
We’ll be getting some eurozone inflation data midweek, which could easily influence the pound-euro rate. Also look out for any political fall-out from a Brexit deal, if it happens, with attacks possible on the Prime Minister Rishi Sunak if he is seen as caving in to the EU, or from the other side if it doesn’t happen.
