The pound strengthened to its best since last August on Friday against the euro, and has remained there or thereabouts so far this morning.
It is around 0.5% or so above where it was last Monday, but has been described as “frothy” by some analysts, suggesting it is unlikely to hold onto that gain for long.
With interest rate decisions in Europe and the US, and a mass of the highest level data in the UK this week, including unemployment tomorrow and GDP on Wednesday, it could all change in an instant.
So to lock that in and take advantage of the best rates since last summer, do call your trader on 020 8108 5163.
Sterling has been supported recently by a stronger economic performance, according to the data, than the eurozone (which has been in recession) and the US (which has seen unemployment rises). That all supports the idea that the Bank of England can continue raising interest rates, while central banks in Europe and the US pause or even end them. But what will the unemployment and GDP data this week do to that plan?
The effect of the UK’s own rate rises has been evident in the house prices, which have fallen in the past year according to the Halifax, and could fall by 10% over the next two years, according to the ratings agency Moody’s. All this while interest rates are sending household debt shooting up.
At a time like this, most of want to make our money work harder. Yet according to the Treasury Select Committee report last week, the old high street banks are offering savers a “measly” return by failing to pass on high interest rates. Not just despite those customers being loyal, but because they are loyal.
When it comes to buying property abroad, where prices are still rising in most of our favourite locations, changing money via a high street bank is never a good idea. It’s not their specialism and the poor service is often only matched by the poor rates on offer. So do give your trader a call and see how we can help you.
