Sterling finally breached the €1.17 barrier last week and was very briefly up to nearly $1.40 too, before falling back last week.
We start the week a little lower than last Monday but still in a very healthy position: 10% stronger against EUR and 20% stronger against USD than we were a year ago.
That was at the very worst period for sterling, when the first lockdown began, and is a sharp reminder of how deep and how rapidly a currency can collapse.
The shock for buyers who were mid-purchase this time last year – when sterling lost 15% over the course of four weeks and their properties were suddenly going to cost tens of thousands more than they expected – was very sad to see. Overseas moves and property purchases, long dreamt about and planned, were cancelled or postponed and some deposits lost.
Sterling did recover some strength rapidly, but it has taken a year to get back to something close to the rates of February 2020 and is still short.
Could it happen again? Absolutely. Sterling’s current strength is largely the result of a few highly fortuitous decisions over vaccine procurement and could easily have gone another way. A new problem or unfortunate decision could be around the corner.
That’s why it is always a good idea to consider a risk-free approach, locking in a good rate when it comes along, as it is now.
Do speak to your trader about that on 020 8108 5337.
