The pound has been swinging up and down around 2% against both the US dollar and euro in recent days. The initial reason for it falling was the increasing talk around what would be essentially a no-deal trade deal between the UK and EU. Strictly speaking it would be an Australian-style deal, apparently, which is close to what we used to call World Trade Organisation (WTO) terms, more extreme than even the previous hard Brexit of a Canada-style deal.
Anyway, enough of all that! The point is that the economy is doing okay at the moment and we have a Budget to look forward to next month. This honeymoon period for the Johnson government is what seems to be keeping the pound at a very good level still. The honeymoon won’t last for ever – we know that at least.
However, for now, the pound staying a good few percentage points above its average for the past three years is great news for anyone planning their escape or a property purchase abroad. Move to an EU country by 31 December and register at the local Town Hall (whether you immediately buy a property or just rent for now) and you’re covered by the Withdrawal Agreement just as if Brexit had never happened. That’s for you and your family. Our friends at Property Guides have an infographic that explains the whole thing.
Don’t forget our latest quarterly currency forecasts too. We’re over a third of the way through the quarter now, so we can start to see which banks got it right and which got it totally wrong.
For a totally up-to-date assessment of sterling’s prospects and how you can protect yourself and your budget from the rocky times ahead, do call your trader on 020 8108 5337.
