By Luke Dyson
Following such a hit last week sterling has struggled to compose itself to produce the weekly gains we were seeing previously following the lock down positivity and the strong vaccine program being run in the UK. This week to date we have seen very limited amounts of volatility with less than a cent movement for both GBP/EUR and GBP/USD. This shows sterling is still holding its strength, but for how long?
With the astrazeneca health scare for under 30s its clear it has done some damage. Again leaving the door open for delays in the UK’s lockdown schedule. With the virus’s potential to mutate or case numbers to rise following this vaccine hiccup it leaves a massive amount of uncertainty at bay for situations to take a step back, which could be another blow to sterling strength.
Although the market has dropped slightly from the previous high , the market is still at an excellent buying opportunity given the current circumstances with the UK still in lockdown. Sterling is up way over 10 cents for dollar and euro compared to this time last year! Which on a £100,000 transfer then compared to now you are looking at €10k /$10k + more than you would have got. Is it worth holding out in the hope to catch the most recent peak again when the market is already so far in your favour? With the end of this lockdown / corona virus in sight it doesn’t mean it’s over just yet. The UK has managed to flatten the curve with the current virus strain however any mutation or vaccine issue down the line could significantly impact the UK’s progress.
If you are looking to buy some currency in the coming weeks or months please get in contact with you designated currency consultant to get a strategy in place in this very uncertain time. Even if you would like to hold out for the previous market high we can place a limit order for you so you dont miss it for a second time. Otherwise if you would like to completely limit your currency exposure we can complete a Spot contract, securing you a rate on the day.