The Pound has reacted positively after the Chancellor Philip Hammond’s first autumn statement. GBP/EUR rates have risen by around half a cent to €1.1750 which is around the best it’s been in 2 months. GBP/USD rates had also initially risen, however much better expected durable goods orders from the USA that were released during the statement. This strengthened the USD and pulled GBP/USD down to an intra-day low of $1.2365. The below charts show how Pound/Euro and Pound/Dollar have moved today during the statement:
Despite growth forecasts being lowered and the deficit set to remain for years to come, the Chancellors comments seem to have calmed the markets somewhat and given investors a little more confidence that the economy is in decent shape and able to handle the transition in leaving the EU. So all in all the reaction on the currency markets have been fairly muted, but we’ve seen a bigger move in the value of the Pound that we usually do with these type of events.
Pound/Euro rates near 2 month high
It’s encouraging to see that Pound/Euro rates remain at their best in nearly 2 months. It’s worth remembering though that much of the rise can be attributed to a weaker Euro that is under pressure due to important political events in the coming months that present a risk to the EU. Those that need to convert Pounds to Euros may wish to consider taking advantage of these levels. A few weeks ago the rate was in the €1.10’s, and today we see it more than 5% higher. It has levelled off in the last week and has failed to go up any further.
Buying €350,000.00 to purchase an overseas property today is £17,500.00 cheaper than just a few weeks ago, and it would be prudent for any Euro buyers to have some protection against rates dropping back away again.
If you need to buy Euros and would like to discuss how we can help you avoid a fall in the rate, click here or complete the form below to send a free enquiry. We have various tools that help protect our clients against adverse exchange rate movements, and also offer some of the best foreign exchange rates available for both personal and business clients.