The pound weakened once more against the euro in the second half of last week, continuing a trend that played out over the course of a quiet yet awkward August. In fact, the whole of summer was a little awkward in a lot of ways – an experience many parents will know well.
Sterling has fallen by more than three cents against the euro since the start of June. To put those figures in real terms, buying a €200,000 holiday home became more than £5,000 more expensive over the summer months. And that’s before you throw in legal fees and other costs.
It’s been a bad stretch for sterling, but the truth is it could have been much worse. Neither us nor the so-called experts can predict where the pound will move. That’s why we recommend you lock in today’s rate to save yourself the stress (and the risk) of not knowing. Just call 020 8003 4915 and one of our account managers will be happy to assist you.
It’s back to school for many across the country, and the same goes for the holiday-happy investors and bankers who make waves in the currency markets. Who knows what the next few months have in store, but for the pound, all roads lead to a crucial autumn budget. Chancellor Rachel Reeves will be unveiling that sometime around late October.
In terms of this week, the UK will finally see July’s retail sales report, delayed to allow the Office for National Statistics (ONS) to sort out a data fiasco. This morning, we learned that British house prices unexpectedly fell by 0.1% in August in the Nationwide study. That took the yearly growth down a smidge to 2.1%.
Finally, anyone sending post across the Atlantic is in for an expensive surprise. An exemption that allowed packages of less than $800 in value to enter the US tariff-free has been closed. Cue chaos for the Royal Mail, Deutsche Post and European small businesses who relied on cheap shipping, which some providers have paused altogether as they sort through the confusion.
