If you are completing on a property abroad today and hadn’t previously locked in your rate with a forward contract, I imagine it might have been a stressful weekend.
For a €200,000 property in the eurozone you would have been paying around £171,000 one minute and then £173,000 just ten minutes later. Whether caused by an errant algorithm or a ‘fat finger’, GBP/EUR has been all over the place.
But even for a $300,000 property priced in US dollars, that increased by nearly £5,000 since Friday afternoon due to a mix of news and data between the two economies.
Interestingly, this morning’s news that the UK economy shrunk in April by more than the markets had expected has so far made little impact.
That may not last, in a hectic week for British economic data and policy announcements. We’ll hear about unemployment tomorrow, before the Bank of England’s interest rate decision on Thursday.
The US Federal Reserve will be making the same decision on Wednesday, which could also impact the pound.
So, with so many property deals going through right now, do call your trader on 020 8108 5163 to lock in your rate, and avoid being affected by interest rates or fat fingers.
