This morning both sterling and the euro reached their highest rates since April 2018 against the US dollar. Both the euro and pound strengthening suggest that the rumours of a breakthrough in EU negotiations are true, or at least the markets think they’re true.
Between the two, sterling edged a little higher as the rumours of a deal – moreover one that eurosceptic Conservative MPs can support – is about to be reached. Let’s hope everyone can avoid crowing about “the other side blinking” long enough for the ink to be dry on the deal, if there is one.
There is also talk – shock, horror – of MPs having to work over Christmas in order to get the deal through parliament. Can I point out that we will also be working over Christmas and the New Year too. Our history shows that this is a popular time to get your plans organised and make a commitment to do something amazing in the next year, like buying a property or moving abroad. Do read our Currency Guide to Emigration if that’s what you’re planning.
Most international estate agents and property lawyers I’ve spoken to will be keeping an eye on their emails this December as lockdowns continue throughout Europe, so it might be worth your while making contact.
As for your currency, anyone planning on buying outside Europe should be thinking seriously about locking in this rate with a forward contract.
For those with a euro transaction coming up, “buy the rumour, sell the fact” is a common phrase in finance, which means that the gains anticipated from good news may not actually occur when it comes. In this case, you might assume that a trade deal will send the pound shooting up, but that’s not guaranteed. Whereas the reverse does seem quite likely: a surprise no deal could kill sterling stone dead.
Therefore, to take the safest option and lock in your currency, call your trader on 020 8108 5337.
