Exchange rates benefit from Parliamentary backing for Theresa May and the ‘Trump Factor’
- Credit: Archant
January was a rollercoaster for exchange rates with the GBP/EUR rate improving by almost 4% in 2 weeks, thanks to the ‘Trump factor’ and Theresea May receiving parliamentary backing to enact Article 50
January certainly was a rollercoaster for Euro buyers, with a difficult beginning to the year giving way to a Sterling rally which fostered much more tempting rates of exchange.
Since the middle of January GBP/EUR has improved by almost 4%, meaning that just over the past two weeks, a £200,000 transfer will achieve additional €8,800 more purely based on exchange rates alone.
You can keep track of live interbank exchange rates at http://www.currencies.co.uk/live-exchangerates/
Donald J Trump – Still an ally to property buyers in France?
Donald Trump’s first few weeks in office have been headline grabbing, eye opening, and were the definition of controversial.
However, he has helped the value of the Pound. So, whatever your politics towards the man, and even the UK is divided with competing petitions on whether to allow him to visit, he has contributed to a cheaper purchase on a French property.
Trump has continued to prove that he wished to be a key ally in the Brexit negotiations with the EU. Unlike Barack Obama who, preceding the Brexit vote, pointedly stated that the UK would be ‘at the back of the line’ for any potential trade deal with the US in the event of a Brexit.
Accepting Theresa May over to the US as the first foreign leader to greet the now President, and re-affirming his commitment of support for the UK’s endeavours, and the likelihood of a unilateral trade deal with the UK worked wonders for Pound to Euro exchange rates. Over the next four days GBP/EUR rallied by over 2.5 cents.
How best to approach your Euro purchase as we edge closer to Article 50 being enacted
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- 6 Discover the South of France villa from the upcoming Downton Abbey film
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- 9 What’s inside the May 2022 issue of FRANCE Magazine UK?
- 10 Who are the Kretz family members from Netflix’s The Parisian Agency?
Now the spotlight turns to the ‘countdown clock’ for the UK enacting Article 50 by Theresa May’s previously stated deadline on March 31st. With the Commons, having voted to give Theresa May’s Government the Power to enact Article 50 in March, markets will be reacting to her ‘aims’ in the negotiations, and the views European leaders are expressing themselves.
The current global landscape is incredibly politically charged. Positive growth data released this month for the UK, normally a piece of news which could move GBP/EUR by a matter of whole cents, have been largely ignored. There are much bigger things at the forefront of investors’ minds and therefore will have greater sway on Sterling’s value and the budgets of prospective property buyers.
We are still waiting to deal with the fallout from the Italian Referendum, the upcoming Dutch and French elections and far-right threat there, and as such the landscape can change very quickly on GBP/EUR exchange rates. This has been seen regularly with a few comments from key individuals causing excessive market movement.
In this hypersensitive atmosphere, a premium will be put on being in a flexible position, and a well-informed purchaser in order to avoid exposure to major movements on Pound to Euro exchange rates.
A feature of a French property purchase to keep in mind is the actual timescales involved. Indeed, the average time between an accepted offer and finally completing on a property is about three months. As the beginning of this article mentions, the cost of a property in real Sterling terms can change dramatically in just a few weeks.
As such a popular option available through a currency exchange brokerage is the ability to ‘pre-book’ your currency at the levels on any given day, to cover that entire three month period, and more if needs be. This is through a forward contract, where a small deposit allows you to move forward towards the completion knowing exactly what your Euros will eventually cost as a Sterling figure.
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