By Ashley Finill
This week has seen a great start for the Pound as it has gained nicely against the euro. Sterling jumped on the single currency throughout Monday’s trading due to the US and China suspending tariffs for 90 days while also agreeing to significantly reduce the new tariffs by over three quarters that had been announced back in March. As a result of the tariff suspension, there was some downside for sterling against the US Dollar as the pound slumped just over a cent but by the close of play yesterday Sterling had clawed back the losses and even slightly gained on the greenback. Over the course of yesterday’s trading Sterling held its ground against the Euro, although the UK posted higher than expected unemployment figures in the morning Sterling managed to hold firm showing the sentiment is strongly with Donald Trump’s Tariff saga. As we come in this morning Sterling remains strong. The Pound has now gained over 3 cents and a half on the Euro since this time last month which presents an excellent buying opportunity should you have a requirement for Euros.
Forward Contracts
Our popular forward contract option could be of interest as you can lock in at today’s highs with only a 10% deposit and the remainder upon completion of your property, giving you peace of mind in knowing that you’re within your budget and removing the risk of the market going against you. With the recent increase against the Euro rate for example, a property costing €200k is over £4k cheaper than it was this time last month. As we have seen in the past couple of months with the unpredictable Donald Trump sending the markets into chaos and further potential interest rate cuts in the UK across 2025, we could see Sterling’s recent gains be reversed. Speak to your currency consultant today should you want to take advantage of the current highs and to go through your options.
Data for the Rest of the Week
As we see out the rest of the week there are still remaining data releases to take note of which could affect the currency market. Today is the quieter day out of the three remaining with various speeches from committee members of the BoE, ECB & Fed. Tomorrow see busier day, at 7am the UK posts GDP and Industrial & Manufacturing Production as does the EU, along with industrial production at 10am. Later in the afternoon the US post Initial jobless claims, PPI and retail sales. To end the week on Friday, EU post trade balance and the US post Michigan Consumer inflation expectations.