By Grace Smyth
Following England’s 6-2 success over Iran on Monday it seems exchange rates have followed suit. With a fairly limited week in terms of economic data, sterling seems to be coping well with exchange rates seemingly coasting along nicely. Looks like market sentiment is carrying the Pound and providing upgraded rates compared to what we saw last month. To give you a view, a property purchase of €150,000.00 is now £4,700.00 cheaper compared to a month ago.
Today we have PMI releases for the Eurozone (9am) UK (9:30am) and U.S. (2:45pm) Markets and investors will be looking to get early indications of Q4 performances. The results could see rates sway a bit so worth keeping an eye on.
Looking ahead a crucial shopping period before the year end starts on Friday and should contribute towards markets insight into consumer spending. The Black Friday sales could give retail sales a boost but time will tell. Retail sales in the UK rose 0.6% month -over-month in October, however stayed below pre-covid levels seen in February 2020. Increases were seen in all main sectors apart from food stores which saw a 1% decrease. Consumers are cutting back on their food spend and opting to spend money elsewhere or not at all thanks to the rising cost of living, energy and food prices.
Although current sterling levels seem positive, it is worth noting that the UK is only just entering into what could be a prolonged tough period for households. The rising cost of living is spreading to all areas, businesses are being forced to raise prices in order to stay in operation, childcare fees increasing, services and travel increasing while wages remain the same. Many families are having to make tough choices and limiting their spending which in the short-long term can affect our economic growth, and in turn investor confidence in sterling potentially pushing exchange rates lower.
Should you have Sterling in hand and an upcoming requirement, do get in touch with us and talk to one of our friendly consultants. We just might have the answer to help you secure your funds to suit your timescale and budgets.