As the financial markets opened for the Christmas trading week, the weight of the new Covid travel restrictions have triggered heavy selling of anything related to the pound. GBPUSD is now down over 3% from the highs of 1.3623 last week [now a very distant memory]. If this momentum continues, 1.30 will be back in sight, a rate that has not been seen for nearly 2 months.
GBPEUR is now down nearly 4% from the highs of last week.
The volume of physical trades at this time of year is naturally lower, due to annual leave and local festive holidays. However with Brexit negotiations, and another round of lockdown restrictions in play, the volatility and risk levels have jumped considerably. The Volatility index has spiked 32%, the largest move since the end of October.
If you’re thinking about trading, or have currency to move, please reach out to us. A trade of 500,000GBP to France to buy a property has just cost an additional 20,000 GBP. If you’re repatriating 350,000 USD to the UK, you’ve gained nearly 8,000GBP since last week.
Private Clients: 0207 801 9080
Corporate Clients: 0207 326 9120
eCommerce Clients: 0207 801 1068.
Have a great day.
Author: Alistair Hutson, Senior Relationship Manager.
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.