The pound has been trying to edge above €1.18 all week, to regain the position it held in February 2020 before the pandemic struck.
It’s an impressive turnaround and an increase of 2% from just two weeks ago. But will it last or break higher?
Even if you don’t have a transaction coming up it can be tempting to keep checking in to see whether it’s made the break out yet – like obsessively checking on the Olympics medal table two months ago to check we’re still ahead of Australia. (Sorry, Australian readers, and congratulations on getting the 2032 Olympics in Brisbane).
You can avoid worrying about catching the right exchange rate – or avoiding a fall that wrecks your property buying budget – in two ways. The first is by talking to your trader about an order to buy, where we will automatically buy your currency when the rate reaches a certain point. The second is by locking your rate in with a forward contract for the year ahead. Talk to your trader on 020 8003 4915 about either of those.
When the currency struggles to reach a certain rate, it is very often followed by a severe fall.
That’s the prediction of several of the banks that have made exchange rate predictions in our quarterly forecasts, which we’ll be publishing next week. They show the widest disparity of predictions since we have been publishing them, with some astonishingly negative forecasts for GBP/EUR and few predicting much more than we have already.
So do make a call to your trader and consider locking in your rate.
One other thing to mention, another Your Overseas Home virtual event, coming up on 13 November. I consider them like a first property viewing trip abroad, where you get the answers to all your most pressing questions, on residency and visas, the legal process of buying a property in Spain, France, Portugal, Italy, Cyprus, Greece and the USA, plus mortgages, healthcare for your retirement abroad and, of course, international currency payments. You can get your e-pass here.
