The pound has been moving sideways for the past two weeks against the euro and has returned to where it was in mid-August against the US dollar as well.
The last six months has been one of the most stable periods for sterling in years.
This mustn’t lull us into a false sense of security though. The question for those with a major transaction in the year ahead is, are serious pressures building on sterling below the surface?
Are factors like the post-pandemic economy and government finances, inflation and interest rates, workforce shortages and Brexit-caused supply problems, all grinding together like tectonic plates, building to a greater eventual earthquake?
Spoiler alert: yes they are. Not just here, but for other major economies too.
As to when it happens though, how big, and even whether ultimately positive or negative for the pound compared to other currencies, no-one knows.
The science of predicting our economic future is more rudimentary than seismology, so we’ll just have to wait and see. However, you wouldn’t buy a property in an earthquake zone that wasn’t earthquake protected, I hope, and I don’t believe in leaving your currency to chance either.
If you are putting in an offer on a property abroad, do please call your trader on 020 8108 5163 and talk about locking in your exchange rate to avoid this potential currency earthquake taking your property dreams with it.
One area where the ground has already shifted and we’re currently picking our way through an altered landscape is the ending of free movement to the European Union. To help us all understand where we are, Smart is sponsoring two webinars with our partner Your Overseas Home, on the subject of the 90-day rule.
They will also cover visas, residency, pensions and much else, I’m sure, to France and Spain, so do register for your free pass here.
