Sterling starts the week in a relatively indecisive mood, having leapt out of the traps on recent Monday mornings in one direction or another.
Also against the trend, GBP/EUR hasn’t followed the pattern of recent years and has not fallen sharply in August. In fact this morning you’ll get 5 or 10% more euros for your pounds than in the past few Augusts, which is nice for those going on holiday and rather wonderful for those buying a property on the European mainland.
Most overseas estate agents appear to be working in August this year and tell me that it’s set to be very busy on viewings.
If you are going to view properties, to take advantage of sterling’s current strength you should lock it in with a forward contract. Many is the British buyer who has come back from an overseas viewing trip having agreed a price in euros at one exchange rate, to find that by the time they get home exchange rate changes have sent the price in sterling far higher.
To avoid that happening to you, call your trader on 020 8108 5163.
Despite it being the start of Europe’s traditional holiday we have a load of data hitting the wires this week, and have already seen German retail sales shooting ahead for June (Germans obviously all go shopping when knocked out of a big football tournament early). If that develops into a pattern we could well see sterling start to suffer midweek.
There is also a Bank of England interest rate decision on Thursday, which could move the markets.
Lots to look out for then, or, if you’re registered with us you can call your trader on 020 8108 5163 and talk through your currency plans.
