How volatile is the Sterling coming up to end of 2021
The last quarter has seen real volatility in the currency market. For the pound, at first that was driven by the widespread belief that the Bank of England would raise interest rates in response to positive economic news and worries about inflation. The rates have remained unchanged in November and there are some reports indicating that the rates might change on December 16th, however the latest Covid-19 infection rates spiralling upwards and the new travel restrictions may put the interest rate rise off to a later point once again.
Lately, the Sterling has fallen in response to the Omicron variant and the imposition of some new restrictions in the UK.
Overall, these factors caused GBP/EUR to move between 1.157 and 1.192 over the past three months: a range of over 3%.
If you are planning to purchase a property overseas in the near future, sudden market movements could have a significant impact on your budget. To minimise the risk of you loosing out on your dream home due to some unforeseen change in the sterling value, we strongly recommend a currency forward contract.
If you want to make sure that any of your upcoming transactions are protected, why not secure a fixed exchange rate now with a currency forward contract. To find out more from our currency specialist team, contact firstname.lastname@example.org