Yesterday was a day of volatility for the pound against the euro. Sterling dropped 0.7% in the morning but then recovered most of those losses and remained stable last night and this morning.
The currency markets don’t know what to think about Ukraine. I’m not sure that anyone does.
The fact that the euro didn’t fall further yesterday, or the dollar strengthen, indicates that for now the threat of disruption looks minimal and business will continue as normal.
So anyone holding out on a large currency transaction to see if the euro weakens significantly looks likely to be disappointed.
You can read more about what a crisis means for different currencies, and what the phrases “risk on” and “risk off” mean here.
However, at Smart we do believe that it can help to talk through your currency needs with an experienced trader on the phone. Why not call 020 8003 4915 and discuss whether now might be the time to lock in your rate, to prevent your plans being scuppered by a sudden fall in the value of sterling, as happened yesterday?
If you have friends or family who may be worried about their currency transactions in such uncertain times, do please encourage them to contact us, or refer them via this page for your £25 credit if they go on to trade with us (£50 for a business client).
