The pound has continued to strengthen, nearly hitting a 3-year high against the USD dollar and an 11-month high against the Euro. We are now trading at 1.395 and 1.1546 respectively at the time of writing.
GBP/EUR is back to pre-covid levels, partly due to the rapid rollout of the vaccine, giving the UK hope of a more rapid economic recovery. This optimism is become widespread, as investors are starting to pull out of safe-haven currencies such as the US Dollar. The pound is continuing to look more appealing as trade tensions between the UK and EU are starting to recede and Boris is soon to announce a lockdown exit strategy.
However, there are other factors to bear in mind. The pound is beginning to look overvalued against the Euro and we still don’t know the efficacy of the vaccine against the new strains of covid. You can read more about what’s in store for the pound in 2021 by clicking here.
If you have any international payments to make this year speak to us about our forward contracts. We can help you to take advantage of the current highs if you are Euro or US Dollar buyer or protect your budget if you are a Sterling buyer.
Call us now on 0203 984 0450 or click here to get a free quote.