Christmas Market Update

By Ashley Finill

Sterling’s significant losses against the Euro and the Dollar seen at the end of last has continued into this week’s trading. The pound showed some promise mid-week, gaining around half a cent on the euro, but this was short lived come Thursday morning as the UK released its Gross Domestic Product figure which came in -0.1%, lower than expected and as result Sterling was gifted a miserable Thursday losing a cent on both the Euro and US dollar. As we come towards the festive period and the end of 2022 there is little of data to note and we may a little more stability over the coming days in what has been a highly volatile year for the currency market, arguably one the most unpredictable and volatile years for the currency market yet. Keeping in close contact with your currency consultant could be crucial over the coming months, as we enter a new year there will be a fresh raft of data to be posted across the board which will influence the currency market.

All economies across the world have had massive challenges and had to react to the global impact the pandemic had financially. Couple that with the horrific war in the Ukraine which has had a knock-on effect on gas prices not only here but across Europe as Russia punished the West in aiding the Ukraine to help defend their land. This surged energy prices and sparked a cost-of-living crisis here in the UK, Petrol nearly doubled from pre-pandemic levels, Gas and electricity shot up and food shopping has seen a sharp increase. Bank’s have risen interest rates to counteract the high inflation levels but has also risen mortgage payments for homeowners. All these actions have sparked a reaction in the currency market and for most of 2022 Sterling has been the loser out of the major currencies and the worst performing economy of the G10 countries. Although this all may seem doom and gloom and does not have a place in our festive spirit, should you have large currency requirements in the coming months, then above is a reality and as we have seen from this week alone Sterling has real weakness to economic forecasts and actual data. That’s why it may be more prudent than ever to speak to us about your options so you are not caught out and maximise your euro potential.

Our opening hours today are 9am-1pm and the same on the 28th,29th & 30th. We are open as usual 9am -5.15pm from the 3rd of January.

I hope you all have a merry Christmas and great new year!