‘A bird in the hand is worth two in the bush’ is a quote that originates from harsher times when men and women had to hunt to eat. Quite simply if you didn’t value your catch you may go hungry!
Well this proverb is true of many things in life, one being exchange rates. As discussed in yesterday’s post (see below) the pound is enjoying an impressive spike against many currencies – we have the proverbial ‘catch’. We are seeing impressive gains against the New Zealand dollar (NZD), the EURO (EUR), the Japanese Yen (JPY), the Canadian dollar (CAD), the Singapore dollar (SGD), the South African Rand (ZAR), the Czech Koruna (CZK), the Hungarian Forint (HUF), the Polish Zloty (PLN), the Swedish Krona (SEK) and the Norwegian Krone (NOK).
As I pointed out in yesterday’s post I do feel that we could see an end to the current spike for the pound. Why? Well the economic outlook for the pound is far from certain. To add to the list of woes outlined yesterday there are futher Public Sector strikes planned, an expected dip in Retail sales (a major contributor to UK GDP) and the danger of the global economy slipping back to recession which will affect the pound.
There is of course the prospect that the pound could continue to make gains but markets just like a rubber band will snap when pushed too much. Luckily we trade all these currencies and many more so if you have any FX transfers to make please get in touch on (+44) 01494 787 458 or [email protected]. We can help protect the bird in your hand while you chase the two in the bush through our range of contract options. The market may move further in your favour, it may plummet but we will be able to keep you posted and make sure that when you do trade you do it at the very best exchange rates.
Enjoy the weekend