Select Page

25 Eastcheap 2nd Floor
London EC3M 1DE
United Kingdom

+44 (0) 20 3880 0575

help@privalgo.co.uk

Office Hours
Monday - Friday
8:00am - 5:30pm

Let's talk currency

Thanks for submitting your enquiry.

A Privalgo representative will be in touch with you shortly.

25 Eastcheap 2nd Floor
London EC3M 1DE
United Kingdom

+44 (0) 20 3880 0575

help@privalgo.co.uk

Office Hours
Monday - Friday
8:00am - 5:30pm

The global rise in Delta cases and the nightmare currently playing out in Afghanistan sent currency markets tumbling last week. GBP, traditionally viewed as a risk-on currency, fared particularly badly, especially against the safe-haven dollar. GBP/USD suffered a drop of almost 2% and ended the week scrambling above the 1.36 mark.

Now, things look rosier for the currency, but there are definitely some hurdles ahead. This week, our Currency Experts discuss the upcoming and much-anticipated Jackson Hole Symposium, McDonald’s milkshake shortage and the global stock market.

If you’re reading this and feel that your business’s transactions could be impacted by what’s mentioned, then get in touch. Click the link below and request a free quote. We’ll be in touch shortly. We’ll provide you with a leading rate, discuss your requirements and walk you through some of our solutions.

Request a quote

Patrick Oakley
Business Development Manager

The Jackson Hole Symposium kicks off tomorrow, and anyone who is involved in the currency markets will be keeping their ears close to the ground. 

For those who don’t know, the Jackson Hole Symposium is a once-a-year event held at a ski resort in Wyoming. There, the Federal Reserve hosts central bankers, economists and academics from around the world to discuss monetary policies and issues centred around an annual theme. 

This year, however, it’s going to be done virtually, due to worries surrounding the unbridled rise of Delta variant cases storming across the US. 

Leading up to this year’s Symposium, the dollar has been struggling. On Monday, for example, GBP/USD pushed up 0.74% while EUR/USD appreciated 0.44%. 

Previously, the markets expected Fed Chair Jerome Powell to use Jackson Hole to announce the start of the Fed’s tapering programme. However, the chances of this happening seemed to have abated.  

Now, investors anticipate that Powell will once again kick the can down the road, perhaps until November. 

If this is the case, which it likely will be, then we may see more pushback for the value of USD. Potentially good news for dollar buyers.

Harrison Hickey
Business Development Manager

Whenever you think you’re done with the Brexit aftermath, it comes right back and takes your milkshake. 

Thanks to a combination of the Delta variant and a Brexit-induced lack of European workers, shortages in HGV lorry drivers have meant that McDonald’s has run out of milkshakes. 

This comes right off the back of the chicken shortage from last week when 50 Nando’s stores had to close. 

It’s a pretty funny story, but it does have a serious underside. It shows how Brexit is still shaping and reshaping the economic landscape of the UK. 

In a similar vein, a recent Reuters article showed that near a hundred high high-paid bankers left London for the EU, also due to Brexit restrictions. 

As for the value of GBP, continued supply chain issues such as these could harm UK’s economic recovery. The result of which could act as a dampener to the Bank of England’s appetite to tighten monetary policy anytime soon. 

All in all, this could lead to further GBP downside in the coming weeks — a potential risk for you if you’re selling GBP. 

Brendan Leonard
Business Development Manager

As you may have seen, the pound has been having something of a comeback recently. On Monday, the currency appreciated over 0.7% against USD and regained some of its losses against EUR. 

Experts are putting this down to factors that lie mainly outside of the UK domestic economy. Namely, the shift in global investor sentiment. 

After last week’s panic attack at the sheer rise of Delta cases across the world, the stock market has rebounded in the last few days. Despite there still being concerns about how far the Delta variant impact will reach, the recovery of developed markets seems to have offset these fears. 

The stock market has taken the value of GBP along for the ride. The pound is considered a risk-on currency, which means that it tends to rise in tandem with global optimism. 

Looking forward, I’d argue that the performance of GBP over the coming weeks will rely majorly on the state of investor sentiment. 

Request a quote

Speak to a Privalgo Representative

submission success

Thanks for submitting your enquiry.

A Privalgo representative will be in touch with you shortly.

Download Your Guide

Thank you for downloading

Find the best exchange rate today

info@privalgo.co.uk or +44 (0)20 3880 0575