It’s hard to know where to start on a day when the pound is facing a bona fide crisis. However, for euro buyers, GBP/EUR is only slightly below the post-referendum average, at its lowest since late 2020. That is due to Europe itself having problems. It could still go lower as the new far-right prime minister of Italy will no doubt try to allay fears over her leadership.
Against the US dollar, this morning the pound dropped to its lowest level since decimalisation in 1971. Although it has bounced back a little since, that’s no real cause for optimism, simply a function of the levels of trade in the Asian markets which opened first.
This is really a day for contacting your trader on 020 8108 5163 and discussing your exposure to risk. For sterling buyers, why not fix the rate with a forward contract? For euro or dollar buyers – especially those already exposed to losses on deals agreed, speak to your trader and see how we can help you.
It’s also worth mentioning that if you know anyone who might be suffering hardship due to the collapsing pound, please refer them to us, (our £2,000 referral bonus still has a few days to run).
Where next is anybody’s guess, but whatever the direction of sterling, our traders are here to discuss your plans and see how to help you.