New highs for Pound

By Luke Dyson

To follow on from last week’s trading , we have seen a significant amount of strength back into sterling, with GBP/EUR now breaking an 18-month high!

Having now broken this long-term ceiling this can now give sterling the free range it needs to continue to climb the rest of the year. Although this major price level has been broken it isn’t plain sailing just yet.

Over the last couple of weeks there have been many different factors which have and can continue to move the markets, such as gas price hikes resulting in the government now having to offer business who cannot keep up financial support.

We also have potential announcements in the coming weeks to Christmas regarding food, toys and essential items having shortages due to haulage problems, which is a major concern in this busy season.

If you are currently in the process of looking to buy consider taking advantage of the current rates, having finally got to this point it is an excellent buying opportunity. Although there is a chance for the market to progress higher in the coming weeks, is it worth the risk of missing out on this amazing buying opportunity and leaving it too late?

Please get in touch with your currency consultant today to discuss potential strategies which would work best for you.

Key economic announcements for the week ahead

20th October : 07:00 – GBP –  Core CPI, EUR – German PPI

13:30 – CAD – Core CPI

22nd October  07:00 – GBP – retail sales