The rates of exchange have had a shot in the arm over the last week, with Sterling reaching multi year highs versus the US Dollar and a basket of currencies in the Gulf.
Against the euro the pound has been gaining steadily and, though not setting the world alight, rates at a high of €1.15 have offered a good opportunity to those that have long waited for higher, or suffered from the lows that we’ve been putting up with in the months gone by. We last reached these levels in June 2017, so it is rare for us to see this.
The reason for last week’s optimism is as unclear as the length of time that we’re likely to remain at this level. Perhaps the fact that Brexit talks have gone quiet is giving the pound some welcome relief from the pressure that will surely come again when the second phase of negotiation kick-off again in March. Of course anything can happen between now and then and might affect the market for the worse.
For now, despite the January gloom, it’s a great time to make hay whilst the sun is shining.
If you need to cover a future requirement but don’t have the funds fully available to you right away, then you can buy a forward contract with us and take advantage of the rate and pay us at a later date. Please get in contact if you need any further guidance on this, or any aspect of trading.
By Luke Trevail, Senior Currency Trader