Sterling continues to veer erratically this morning, like a Downing Street employee’s progress along Whitehall after a Christmas party that definitely didn’t happen.
The betting on Omicron seems to be that not only is it not a gamechanger, but that like milkmaids 200 years ago who avoided smallpox because they were already infected with the much milder cowpox, it might protect us from the harsher Delta variant.
However, sterling doesn’t appear to be getting much support and has drifted away again this morning.
There hasn’t been a huge amount to excite the markets yet this week.
We learned last week that wealth in the UK has increased by 8.4% during 2020. That will only have grown bigger in this year of lockdowns and restricted travel and entertainment.
Much of the increase in wealth comes from property, and yesterday the Halifax revealed another 1% rise in property prices during November – annualised to 8.2%.
At Smart we are preparing for an extremely busy year in 2022, and have been strengthening our teams with yet more expertise in currency and overseas payments. I know that many clients are looking at 2022 as a very exciting year indeed.
Sterling remains at around 6 or 7% stronger than this time last year, and only around 1% off its peak for 2021, so why not lock it in for the year ahead with a forward contract? It’s one less thing to worry about.
You can do that with a call to your trader on 020 8003 4915.
