Sterling in freefall with no respite in sight
13 March, 2020
This week we have seen another nightmare week for sterling as the Pound has lost just over 3 cents on the majors due to the current economic crisis due to the coronavirus spreading across the globe at an alarming rate. All economies throughout the world are being hit damaging stocks and shares with Sterling taking the wrath. The pound had been in free fall in the past 3 weeks seemingly losing support from investors which has seen GBP/EUR plummet 9 cents with no respite in view.
Banking Authorities around the world are taking strong measures to minimise the impact that the virus has on the economies by slashing interest rates this week. With Sterling already in a weakened position to the Euro due to EU Trade talks starting last month it is eminently possible things are likely to get worse before they get better as business’s face closure and more of the public being isolated thus taking a negative impact on our economy. The London Stock exchange has already seen huge losses with 10% being wiped off yesterday alone, the biggest loss seen in over 30 years.
If you have an imminent euro requirement within the next 2/3 months it may be prudent to seriously think about getting your currency in place sooner rather than later. With the UK entering the delay phase of the virus this will mean business’s closing and investors shying away from the pound and continue to sell of Sterling. Get in touch with your account manager today to discuss your options.
Happy Friday 13th!
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- The Pound last week hit its lowest level against the Euro for over 10 years 23 March, 2020
- BoE Rate cut sees Pound claw back after Flash crash 20 March, 2020
- Last week compounded sterling weakness as we saw traders dump sterling daily 16 March, 2020
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