Sterling soars after UK vaccines boost hopes for economy
Here’s what could be in your favour when making an overseas payment this month
The first few months of the year were expected to be a slump as lockdown continues, however, with the vaccine rollout a success, trade talks progressing favourably and spring just around the corner, the UK economy is on course for a rapid recovery as we move further into 2021.
Vaccine Rollout Success
2021 got off to a somewhat pessimistic start with the lifting of lockdown restrictions ruled out provisionally until spring, creating a wake of sustained economic damage. Fear of new virus variants spread at a rate rivaling the virus itself, causing optimism surrounding the efficacy of the vaccine to waiver. However, the vaccine rollout has proven to be a success thus far, with more than 17 million people having received their first dose, creating hope for investors, businesses and individuals alike that a tentative reopening of retail, hospitality and domestic tourism may be on the horizon. There are still challenges ahead, namely around scale, supply and storage of the vaccine, but, for now, the forecast appears positive.
Rapid Recovery for UK Economy
Powerfully optimistic growth forecasts from the Bank of England made headlines last month predicting a strong economic rebound for the UK coming into spring. Underpinning the prediction is the combination of a successful vaccination programme, fruitful trade talks and a tentative reopening of business. An enduring lockdown caused consumer spending to decline to levels not seen since last spring, but despite that, GDP performance has remained resilient. The euro and the US dollar continue to face struggles, while the pound stands strong at three-year peak.
Trade talks deliver
The UK is still riding high on the UK/EU trade deal, on both an individual and economic level. Currency markets continue to reflect that the disaster of a no-deal Brexit was avoided, sparking a remarkable surge for the pound. UK government continues to persue a plethora of lucrative trade options, sealing a deal with Japan in recent weeks. Negotiations continue with Australia, New Zealand and the US, all of which have the potential to deliver strong outcomes for the pound.
Make your payments go further in 2021
Working with an international payment specialist such as Mail Finance International Money Transfers allows you to take advantage of positive exchange rate movements and get the most out of your money. If you’re happy with the current exchange rate, whether you’re making a payment now or in the future, you can fix the rate for up to two years with a forward contract (this may require a deposit). Or, if your sights are set higher, you can set a target for your ideal exchange rate, which means that we’ll alert you if and when your rate is achieved so you can make your payment without missing out. In addition, our team of dedicated foreign exchange managers is here to help you navigate the fast-moving currency markets. You’ll enjoy great exchange rates and low transfer fees, saving you time and money on each payment. Speak to one of our specialists today to open an account or discuss how Mail Finance Money Transfers can assist with your international payment needs.