After a miraculous run, the Pound has lost some of its lustre.
Against the US Dollar, GBP sits at a 6-week low.
Against the Euro, GBP is near a 3-week low.
Well, firstly, the Pound has had a strong run, so was vulnerable to profit-taking.
Secondly, the recent news has not helped the Pound.
In the US, a whopping $1.9 trillion stimulus package is about to unleashed, which is seen as good for the Dollar.
In the EU, there’s talk about banning vaccine exports to Britain – good for the Euro, bad for the Pound.
The UK still has a sizeable advantage in terms of its vaccine roll-out, so the current downturn in Sterling could well prove short-lived.
It is, however, a sharp reminder of how quickly currency trends and sentiment can change course.
We note the ‘net long’ (bullish) position in Sterling futures has shrunk considerably in the past 2 weeks. In other words, investors are getting nervous.
It’s why we are always looking to take advantage of favourable moves while keeping an eye on upcoming risks.
If you would like to discuss your upcoming money transfer, please get in touch with our team on 01872 487 500.
To find out our latest rates, click below.
Thanks For Reading, What Next?
Have a great day, Geoff Lambourne - Direct Dial me on 0044 (0)1872 487 470.
Wednesday 24th March 2021 at 09:45
£1.00 GBP = 1.1588 EURO
£1.00 GBP = 1.3716 USD
£1.00 GBP = 1.7998 AUD
£1.00 GBP = 1.9619 NZD
£1.00 GBP = 1.7241 CAD
£1.00 GBP = 20.3051 ZAR
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