By Matthew Boyle
Prior to the last travel review on the 5th of August there were rumours Spain would me moved from the Amber list and upgraded to the Amber Watchlist – increasing restrictions and making travel both more difficult and costly. Fortunately this was not the case, although travellers were warned to take extra precautions.
However, in recent reports there has been some great news for the Spanish and for any prospective buyers there. Spain has now fully vaccinated 63.5% of the population surpassing the UK’s fully vaccinated 61.1%. This will almost certainly keep Spain well off the Red list with many hopeful that this news may tip it on to the Green list – potentially great news for many readers!
The next UK travel update is due on the 26th August so lets hope we get some good news.
In the FX Market GBP/EUR rates reached a new 18-month high at the end of last week but have since dropped (slightly concerningly) to below a well-established ceiling of resistance in the rates (previously the highest level seen).
Now it is sat below this level it may struggle to break above, particularly as concerns grow for Covid spikes as we approach colder weather in the UK. Should we see a spike in Covid rates/ potential lockdown, this would be devastating for the Pound and its recent gains, so it might be prudent to take advantage of the current rates.
Despite this very minor drop-back GBP>EUR rates remain the best they have been in just under 18 months so don’t wait to gain a proverbial inch up when you could lose a mile down.
For GBP/USD buyers rates seem to be on the downward march currently. Analysts suggest that this is a result of a few factors – the UK missed inflation and GDP estimates in July creating some weakness for the Pound, coupled with a recently strong US Dollar as a result of vaccination success and economic improvement in the US.
USD buyers may want to consider acting now should this downward push continue.
Without doubt Covid sentiment is largely driving rates now, with the market seeming particularly sensitive. With the cold weather starting to set in if Covid numbers do rise, we will almost certainly see Sterling derived rates drop. But should we make it through the winter we will likely see the Pound push up in the coming months and exchange rates improve.
Certainly, the coming months with be testing on several fronts.
Speak to your Broker today for some friendly guidance on how to reduce your risk and manage your upcoming currency transfers.