With the Christmas period upon us, this week’s economic calendar is light, leading to flat market movements and subdued volatility. However, last week’s developments in monetary policy and currency trends still present key opportunities for businesses and investors.
Pound Recovers After BoE Decision
Last week, the Bank of England’s monetary policy decision created initial headwinds for the pound. A split in the Monetary Policy Committee (MPC)—with 3 out of 9 members voting to cut interest rates—increased expectations of a potential rate cut at the next meeting.
Despite this, the lack of significant economic data this week has allowed the pound to regain ground against both the euro and the dollar, providing a favourable window for businesses to capitalise on its strength.
Why Now is a Great Time to Hedge
The pound’s recovery offers a timely opportunity for forward buying. By locking in a competitive rate now, businesses can:
- Protect themselves from adverse market movements as we approach 2025.
- Secure their financial position amid ongoing uncertainties.
Take Action Before Christmas
With markets stabilising in the lead-up to the holiday season, now is the time to consider your currency strategy for the new year.
Contact Qumoney’s experts today to discuss forward buying and hedging opportunities. Protect your business from volatility and secure peace of mind as we head into 2025.