Sterling has now entered a fourth week barely moving against either the euro or US dollar. That may give cause for alarm for anyone with a major transaction approaching overseas, or budgeting for a life overseas, as the markets try to work out whether sterling is worthy of support or whether its gains are played out for now.
It could go either way, so do talk to your trader about locking in today’s rate for complete peace of mind. We are still way above the post-referendum average.
Economic data has been thin on the ground this week, but there were some interesting reports, one from one of the banks and another from the British Retail Consortium, which found that consumer spending for this May in the UK was 8 to 10% higher than in May 2019.
We know that many people have accumulated significant savings during the past year – hundreds of billions of pounds-worth according to the Bank of England. The Bank’s analysts reckon people will spend around 10% of that in the near term, while putting some of the rest towards assets such as property.
How quickly that happens will depend on people overcoming the inertia (and maybe even the nerves) of returning to normality. It certainly feels strange getting on the London Tube for the first time in a year, let alone sitting in a crowded bar, concert hall or easyJet flight. Maybe easier to just sit at home…
For those buying property abroad, there are several things you can do now, while you gradually get into the habit of returning to normality.
If you haven’t registered yet, why not do so now? It only takes a minute or two and the simplest of identity checks. Then you can get a quote for your pounds into euro or dollars (or any of the other 30-or-so currencies we work in) and know exactly how much you have to spend abroad.
For those planning a viewing trip abroad this summer, I would strongly suggest talking to your trader on 020 8003 4915. We can help with deposits on properties, and get you prepared to make an offer.
Lastly, and most importantly, if making that offer you will need to know that you can still afford it when you come to complete! You can do that by locking in the rate with a forward contract as soon as you are committed.