<div style="display:inline;"> <img height="1" width="1" style="border-style:none;" alt="" src="//googleads.g.doubleclick.net/pagead/viewthroughconversion/1028731116/?value=0&amp;guid=ON&amp;script=0">
CHRISTMAS OFFER Subscribe to France Magazines today click here

How best to approach your Euro purchase as we near 2017

PUBLISHED: 16:22 08 December 2016 | UPDATED: 17:09 08 December 2016

Currency exchange update © Stadtratte / ThinkstockPhotos

Currency exchange update © Stadtratte / ThinkstockPhotos

Archant

November was a very volatile period for the GBP/EUR exchange rate but what will happen in 2017 as Trump becomes president of the USA and Brexit negotiations begin?

November was one of the most volatile periods GBP/EUR exchange rates have seen since the result of the EU Referendum vote released on June 24th. Over the past month GBP/EUR has improved by 6.8% between the high and the low, meaning that since November 1st, a £200,000 transfer will achieve an additional €16,260 purely based on exchange rates alone.

Keep track of live interbank exchange rates here.

Donald J Trump – An ally to Britain and property buyers in France

Whatever your thoughts towards Donald Trump, it is undeniable that he has assisted the buying power of anyone holding Sterling and seeking to buy Euros in the near term.

Trump is seen as a key ally in the Brexit negotiations with the EU, presenting an utter contrast to the damning rhetoric Barack Obama brought with him on his first visit to the UK. Obama said the UK would be ‘at the back of the line’ for any trade deal with the USA following a Brexit, whilst Trump even during his campaign trail was saying he would instead welcome a post-Brexit Britain with open arms.

Given that the US is also currently in negotiations with the whole of the EU on their own trade deal, the Transatlantic Trade and Investment Partnership (TTIP), the EU appears to be caught in a catch 22 between upsetting the US and making sure they are tough on the UK to discourage other leavers.

He doesn’t take office until January 20th, and with the Brexit still being pre-negotiated before Article 50, French property buyers could see a key ally to help sure up the Pound’s value during an uncertain beginning to next year.

Buying Euro purchase as we approach 2017

The turn of the year will bring its own challenges and opportunities for anyone looking to buy the Euros necessary for them to complete on their dream property.

The Pound is enjoying strength at the moment given that financial markets are pleased the UK may no longer be moving full-steam ahead with a ‘hard Brexit’. Subject to a Supreme Court ruling come January regarding Parliament’s role in the Brexit negotiations and in triggering Article 50, this should not be changing in the short-term.

Even the Secretary for Exiting the European Union, David Davis, stated publically in the House of Commons that the UK would likely pay for preferential access to the single market following an exit. For markets, any steps to soften the changes to the British economy seem to be received well for the Pound.

However, the current global currency landscape is still very politically charged. We will have the fallout from the recent Italian Referendum to deal with, the ongoing Brexit negotiations, the French election and far-right threat there, and as such the atmosphere surrounding GBP/EUR exchange rates can change very quickly and without much warning.

In this situation a premium is put on being an informed purchaser, and knowing the extent of your options to understand how flexible your position is, in order to navigate a 2017 which is set to rival 2016 for turbulence.

One point I will take the time to mention is that if you have had an offer accepted, the standard time between this and your completion is around three months. A popular option offered through currency exchange brokerages is called a forward contract. If you make an offer on a property, you do not have to be worried that the exchange rate may be vastly different by the time you come to securing your Euros and complete on your property.

A currency exchange specialist is here to assist you in timing your transfer, highlighting potential areas of risk and opportunity to make sure your budget is protected from sudden or expected adverse movements.

More about Foreign Currency Direct

Foreign Currency Direct is a leading UK currency exchange brokerage. Established in 2000, Foreign Currency Direct is dedicated to offering the highest levels of customer service, that’s why each client is assigned a dedicated currency broker, someone who understands your unique situation and works tirelessly to gain the maximum value for every currency transfer.

Learn more about Foreign Currency Direct plc at: www.currencies.co.uk

currencies.co.uk , the home of Foreign Currency Direct currencies.co.uk , the home of Foreign Currency Direct

Subscribe today

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

France Forum

Questions about France? Visit our free France forum to get help and advice from thousands of other Francophiles and expats. Topics include: property, tax, law, travelling, pets, education, healthcare and much more.

Join the forum

Most Read

Join us on social media

France magazine
Living France magazine
French Property News magazine

Enter our competitions

Win books, DVDs, travel and even holidays in France in our great competitions! Take a look at our latest competitions…

Enter now