The pound hit its highest rate since late May against the euro, and since late July against the US dollar yesterday. I follow and write about currencies all the time, but it’s still a thrill when the pound goes up in value. Even if you’re not buying anything, seeing that graph go shooting up is quite addictive.
Presumably it’s something to do with endorphins. Some people get the same hit from social media, I am told. I feel the same way about checking sports results, which is equally pointless in its own way. In fact it’s quite a relief when the Ashes/World Cup/Olympics finish so you can go back to focusing on your own life.
A forward contract lets you do that with your currency exchange too. When you’re committed to a property purchase, or are moving abroad but living on an income from the UK, a forward contract locks in a rate so you know exactly what you’ll be paying the year ahead.
Today’s rate certainly does look tempting. GBP/EUR is back to its rate before Theresa May resigned as Prime Minister. Given that we still stand a good chance of either no deal or a general election with very different potential governments, that looks like a rate to lock in.
Please call your trader on 020 7898 0541 for a no-obligation chat about your currency plans.
