A turbulent seesaw…currencies up, down, down, up – Market Update 29th April
The turbulence in the market continues with the rates very much on a seesaw at present.
GBP has recovered somewhat against the majors following the lows of the last few weeks, but against the Aussie and Kiwi it has really struggled falling from the giddy heights of 2.04 and 2.0950 respectively. Much of this has been put down to the seemingly strong positions that both Australia and New Zealand find themselves in regarding Covid-19, with the NZ Prime Minister Jacinda Ardern declaring just yesterday that both the north and south island are Corona free! A bold statement given the effect it is having globally at the moment, but an admirable one at that.
Elsewhere, Boris Johnson’s triumphant return to work gave the Pound a boost, but although he has delivered one rallying speech this week to signal that he is back in the hot seat, he has taken today off due to the birth of his latest son with partner Carrie Symonds. If Covid pressure wasn’t giving him sleepless nights (which I am sure it was of course!), a new-born baby most definitely will… I wonder if he will carry out any night feeds??!
Recent data releases from the UK, Europe and the US paint a predictably grim picture at the moment, with the manufacturing and employment sectors taking the brunt of the Covid-19 impact. It is worth considering though that economic data, whilst usually highly influential to the market, is playing second fiddle to geopolitical factors as governments globally fight to keep spirits high in their respective nations whilst trying to temper the real world impacts of the virus to the man or woman on the street. Leaders are having to walk a tightrope in order to manage this and the long term concerns for economies is that whilst it’s great the fiscal reaction from Chancellor Rishi Sunak and his compatriots has been impressive, the debts being created now to save us all from economic disaster will have to be repaid in some form further down the line, so it has an air of “kicking the can down the road” to be frank. We’ll have to see what transpires in the coming months and years.
There is one thing you can guarantee at the moment, and that is ongoing uncertainty in the market. Now is not the time to be reactive to price moves quite simply because the rates can swing so aggressively that by the time you have noticed, it may already be too late. Knowing what you have in your pocket is far more preferential to leaving it to chance which can be very stressful. Fixing a rate gives you the peace of mind that you are not exposed to the unprecedented market movements that we are witnessing and will allow you to focus on more important parts of your business or personal life.
We offer are a number of ways you can secure currency and alleviate the pressure on your currency transactions. If you would like to discuss your choices or just want to get a rate, please call the dealing team on +44 (0) 1491 577550 and we’ll be happy to help!
Kind regards, and Keep Safe!
James