Chatting yesterday to someone about a weekend trip to Nice they’ve just booked for the spring, and knowing I was in the business, she asked if she should get her €500 spending money now, or wait until closer to the time.
I was confidently able to tell her that I hadn’t a clue. Or at least, not to where the pound to euro exchange rate would be by then, but that it certainly wouldn’t do any harm. It’s good to know that some people are thinking ahead.
Suppose it had been a €500,000 apartment in Nice though? I still wouldn’t have a clue about where GBP/EUR would be, but I most definitely wouldn’t leave it to chance if I were committed to buying then.
Over the past week, a €500,000 home has increased by around £8,500 due to exchange rate movements and by the end of the week it could easily be a lot more..
So why not chat to your trader on 020 8108 5163 to lock in your rate with a forward contract.
On Friday we have the quarterly GDP data and will have clearer idea whether the recession that the Bank of England is warning of, has started. House prices appear to have taken a hit, as according to the Halifax this morning they fell 0.4% in October.
In fact I did point out to the Nice lady a report in the FT on Friday highlighting the various negative factors weighing on sterling, with as they say: “a toxic mix of high inflation, a massive trade deficit, and a bleak outlook for the UK economy.”
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