Recently sterling has been at its highest level against the Euro since May 2017, according to foreign exchanges. For buyers using sterling, and purchasing a property in the Eurozone, this is an advantageous moment. By using a specialist currency firm, you have an opportunity to fix your exchange rate for up to two years from now and that is potentially equivalent to saving £12,000 on a €200,000 property.
Last week there was a minor spike in the GBP-EUR rate when a Bank of England (BoE) meeting seemed to be leaning towards raising interest rates. The Monetary Policy Committee (MPC) meeting was supposedly going to vote 7-2 for leaving interest rates at 0.5%, however, there was a bit of an upset when One committee member, Andy Haldane, unexpectedly voted for a higher interest rate, producing a 6-3 vote result.
The consequence of this was a short-lived spike of ¾ percent before the GBP-Euro rate fell back but managed to finish higher than where it had started at the beginning of the week.
On Monday 25th June, the GBP to Euro exchange rate leaned in favour of the European currency today, with the Pound sterling converting to €1.1380, according to Bloomberg’s figures. This is down compared to Friday morning, when sterling stood at €1.141 before falling later in the day. However, there is speculation that the pound may pick up following a business confidence report from Germany today, according to analysts at TorFX.
Alistair Wilson, Head of Retail Platform Strategy at Zurich, said the Bank of England’s decision last week to hold interest rates at 0.5% was “unpopular” and despite the slight hiccup at the MPC meeting last week it is unlikely that that interest rates will rise in the near future. He said, “”Following UK inflation unexpectedly staying at a one-year low, and with wage growth also slipping, the chance of a rate rise is even less unlikely.”
The effects of the Brexit negotiations and other economic factors on the GBP-Euro exchange rate this summer are not yet known, but it is worthwhile consulting a currency exchange specialist if you’re planning a purchase in Euros, because they can advise you on getting the best rate for large transfers.
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