Last week was not so great for the pound, as it fell to its lowest point against the euro since May.
Good news for anyone moving funds back to the UK, of course, so if you are in that position, please do call your trader.
Although today’s exchange rate may look a little disappointing if you are heading off to buy a property abroad this week, this is not how I would look at it. Firstly, the decline from the best rate in 2023 has only been around 3%. Much larger falls are very common. Indeed in a six-week period last year the pound last more than 7% against the euro. Anyone who had agreed the purchase of an averagely priced property in Europe last August, but had not locked in their rate with a forward contract, had to find as much as £15,000 more to complete on it a few weeks later.
Today’s GBP/EUR rate is exactly on the one-year average and is better than the five-year average.
That may not last. This week sees a mass of economic data for the UK, including unemployment and earnings tomorrow, inflation on Wednesday and retail sales on Friday. That could all build a negative picture of the UK economy and sink sterling further.
So if the exchange rate today is sufficient to allow you to fulfil your plans, why not call your trader today on 020 8108 5163 and lock it in with a forward contract?
