GBP/EUR passed through the 1.19 ceiling to end last week, the first time it has done so since the hours after Donald Trump’s tariff announcement on 2 April.
It’s been quite the journey for overseas buyers in the past month. In just five short weeks, the price you would have paid for a €250,000 property has fallen by over £7,000. However, if you were to have bought a house for that euro price on Friday, it still would have cost £3,000 more than at the start of March.
Up today, down tomorrow: that’s all part of the dizzyingly complicated nature of currency markets. If you’re looking to make a large transaction, we would strongly recommend you protect your budget from risk by locking in today’s rate. All it takes to get peace of mind (and to sleep a little easier, too) is a quick call to your account manager on 020 8003 4915.
Back in the days of those tense Brexit negotiations, you would never have thought the UK and the European Union might move closer. But that’s exactly what could happen this week. Prime Minister Keir Starmer is hoping for a breakthrough on key issues like defence and trade that doesn’t touch the Labour party’s “red lines”, i.e. limiting freedom of movement and keeping Britain out of the customs union.
The pound will also be impacted by a significant inflation report on Wednesday. Price increases are forecast to have moved sharply higher in April, which could bring volatility should those figures force a rethink on future interest rate cuts from the Bank of England.
Meanwhile, German industry data could shift the dial for the euro, while the US dollar will likely be engaged in another round of the tariff tap dance. President Donald Trump last week indicated he might have to impose blanket tariffs on nations without a trade deal instead of engage in time-consuming negotiations.
