The pound starts the week nearly 3% higher against the USD than last Monday while GBP/EUR remains largely unchanged.
The longer-term ramifications for the currency from a Joe Biden win are essentially unknowable – could his election encourage the British side to come to a Brexit trade deal, for example, and be positive for sterling? Or could Democrat policies benefit the euro as an alternative reserve currency and be negative for sterling?
The shorter-term positive is that the US, despite complaints about voter fraud, has not erupted into civil strife as had been feared – yet another reason to think about buying a holiday home in the USA once again.
Whatever your political persuasion, the world might look a slightly more welcoming place this week. At Smart we’re looking forward to a busy week as we prepare for Your Overseas Home on Saturday (14 November). You can still register for tickets for this all-virtual event here, which recreates the best bits of a property show, just without the need to get up early on a weekend and worry about parking.
Sterling reacted positively to the Joe Biden win, but that could be easily be scuppered by the lack of a Brexit breakthrough this week, so we would advise caution if you have a major trade or move coming up this year, such as leaving your city home and retiring gracefully to Florida, for example.
You can lock in your rate for the year ahead, so please do speak to your trader today on 020 8108 5337.
