Last week sterling reached its highest level against the euro since May. Against the US dollar the pound remains at around its strongest since May 2018, and among its highest rates since the referendum in 2016.
But can you rely on it staying that way?
Change is clearly in the air. This week we’ll see President Biden inaugurated (although the silencing of President Trump on twitter already makes it feel like a new era). There are 350,000 being given their first vaccine dose each day in the UK – that’s equivalent to a city the size of Belfast or Cardiff. Meanwhile, the UK leaving the Brexit transition period has happened relatively quietly for most of us.
Although the Covid situation remains appalling in the UK, we can prepare for better times and at the present rate of vaccination they could arrive quicker than expected.
At Smart we’re gearing up for a busy springtime, but the headwinds for sterling remain and the pound may well struggle to find support as life returns to normal. So if your own post-pandemic plans include doing business abroad, do not rely on finding today’s elevated rate for sterling when you need it.
That is why we recommend a forward contract, that secures today’s rate for the year ahead. You can discover more with a quick call to your trader on 020 8108 5337.
