Sterling off to a strong start for the month

By Luke Dyson

For the week that has just gone we have seen sterling finally gain some traction amongst the coronavirus uncertainty, with the updated travel restrictions last Thursday shining a bit more positivity for the the weeks to come as more and more countries open up onto the green list for travel. At present Malta, Croatia, Iceland , Madeira and Jersey being the main ones for UK individuals being able to travel, although a few more are on the green list the countries are still restricting travel making it not possible for British citizens to arrive.

This travel update plus the announcement from the Bank of England of a likely interest rate hike in the second or third quarter of 2022 have significantly boosted sterling with GBP-EUR gaining just over a cent in the last 5 trading days, and also a steady gain across the board for the other GBP major currency pairs.

For the week to come we have a couple of key economic announcements with German CPI (Consumer Price Index) on the 11th but also UK GDP (Gross Domestic Product) on the 12th which both could cause some volatility for the GBP/EUR pair.

If you have any up and coming currency requirements, do consider taking advantage of the current sterling strength, for GBP EUR this is an excellent buying opportunity with the market the best it’s been since February 2020. Please get in touch with your currency consultant today to see how we can help you best take advantage of the current situation.