In a quiet period for data – until Friday anyway – it’s one of those weeks where sterling is marking time and waiting for things to happen in other countries and economies.
For Europe that is more news both on the situation in Ukraine, on which Presidents Macron and Putin had talks yesterday, and more hints on the future monetary policy of the European Central Bank.
For GBP/USD the US inflation data tomorrow afternoon will make fascinating reading.
Influencing the pound from this side of the equation will be the new GDP figures on Friday.
It’s uncomfortable feeling that your future prosperity and plans are at the whim of someone sitting either in the Kremlin or Frankfurt.
The way out of that is to take a proactive approach and fix a rate that allows you to fulfil your plans, whatever anyone else’s foreign policy.
Do feel free to call your trader on 020 8003 4915 to talk through the various issues that may affect sterling – poised precariously as it is right now. That’s what they’re there for and they are extremely knowledgable.
Lastly, there was an interesting trick that some Spanish mortgage companies tried before the financial crisis, where they fixed a floor in how far a mortgage rate could go down. So when interest rates crashed, mortgage rates didn’t. That has been judged illegal by a Spanish court and there could be a pay out if you’re affected. Do attend a free webinar about it TOMORROW if you think you might have been affected. You can do that here.
