I’m not usually someone who closely tracks exchange rates, well unless I am off on my jolly holidays, but I then hear myself ask “what are holidays?”
However, since PurePac is now importing goods from the EU I am avidly following the ups and downs of the GBP. My reasoning for this is to pinpoint the best time to purchase euros to pay my EU invoices. I’ve become quite obsessed and intrigued by the process, it is fascinating to read the reasoning behind some of the rallying against the euro and the dollar.
Back in February, the pound-to-euro exchange rate reached the dizzy heights of 1.1707 whilst the pound-to-dollar exchange rate reached 1.4243, albeit both rates have dropped again. Analysts believe much of this rally is down to the success of the UK’s vaccination programme. However, the same analysts also believe once the vaccination programme is complete, there won’t be any new reasons for the pound to climb.
I’m not an expert but surely once the UK vaccination programme nears completion and lockdown ends, we’ll see another surge in the GBP’s strength. Especially against the backdrop of European vaccination programmes being left behind by a significant margin. And also, Europe’s largest economy, Germany is currently finding it difficult to see an exit to their lockdown, with virus rates continuing to increase whilst the UK cases are plummeting.
What are your thoughts?
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