Sterling/Euro continues to fall
We saw a sharp fall in GBP/EUR rates yesterday as I outlined in my last post, and this morning rates have continued to fall. A quick look at the chart below shows you that we’ve dropped nearly 3 cents in 24 hours, meaning a €250,000.00 property abroad is costing you £4000.00 more than this time yesterday, really illustrating how quickly things can change in the currency markets:
It’s clear now that most analysts think it will be 2 years until the UK raises interest rates, and due to the prolonged period of little return, investors are looking for more favourable places to deposit their funds. In real terms this means the Pound is being sold across the board, and this is the reason for the continued slide this morning.
Rates are still much better than a few weeks ago however, and you can fix the current levels by using a ‘Forward Contract’, whereby you simply lodge 10% of the total you want to convert, and I can guarantee the current exchange rate for up to 2 years into the future.
If you would like to discuss this in more detail or obtain a quote, please click here and send me an enquiry.
Pound/Dollar rates dropping
It’s not only Euros that are becoming more expensive, as Sterling/Dollar rates have also been dropping of late:
This week alone we’ve seen a drop from $1.55 to $1.51. Part of this is due to the weakening of Sterling due to the Bank of England information yesterday as I outlined in my last post. However there is another reason for the drop, and that is Dollar strength. Markets are gearing up for the US Federal Reserve to raise interest rates next month. The more likely this becomes, the stronger the dollar gets due to the higher return on offer.
Today is key for Pound/Dollar as at 13:30pm we have jobs data. This usually created a lot of volatility, as the Non-Farm Payrolls (the number of jobs created excluding the agricultural sector as it’s seasonal) is usually very different from the forecast. The consensus is for 180,000 jobs to have been created. If this number comes out higher, the GBP/USD will fall. If it comes out lower, then rates may recover. Very rarely is the number as expected, so there is likely to be volatility in exchange rates this afternoon.
Find out if you can get a better exchange rate
If you need to convert any international currency to another, then get in touch with me for a quote. The rates I provide are usually significantly better than banks and other brokers can offer, and we are fully authorised by the FCA in the UK so your funds are safe.
Get in touch for free by following the link below, and I will get in touch to explain the mechanics of how the service works, and provide you with a quote so you can see how much you could save.