Eighth time lucky

Good morning,

At the eighth time of trying, yesterday GBPEUR managed to break through and remain above the 1.1280 barrier. Currently holding at 1.1314 at the time of writing, euro buyers will be jubilant seeing the rate sink away from the mark over the course of the last 7 months. GBPUSD also found similar success and is currently sitting at a high last seen in April 2018. If you are an individual or a business trading in either currency, a conversation with your account manager could be beneficial to take advantage of the recent uptick. Contact us for more information.

The strengthening of the pound follows broader global risk appetite as Joe Biden was sworn in as the 46th President of the United States. A much less subdued event than an inauguration in years gone by, due to Covid restrictions, the new President took to office and immediately went about reversing some of the decisions taken by the previous administration. With extensive stimulus plans being spoken of, including a Covid relief package, with Biden’s tougher stance on the virus, equity markets rallied on the trust of US growth over the next 4 years. Sterling naturally follows global risk appetite and with improved sentiment, sterling was able to capitalise. With any incoming President, the first 100 days are said to be the most important as they lay down their plans and shape the course of the next 4 years.

Have a great day.

Jack Nicholls, 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.