It’s going to be a busy day on the currency front today, with some interesting data releases indicating where the UK’s and our main trading partners’ economies are heading.
This morning we’ve already had the Halifax House Price survey, which was quite positive, still rising; then we have retail sales this afternoon, Eurozone investor confidence, the Canadian purchasing manager’s index…
Okay, who am I trying to kid… there’s only one game in town today and it’s Brexit. Sterling already looks like it’s taken a long walk along a short pier this morning against both the euro and US dollar, dropping around 1% in the past two hours.
At any moment we could get final word that a deal is off, and it sink far lower, so do call your trader on 020 8108 5337 to discuss locking in this rate.
When buying a property abroad, a 1% drop in your rate may amount to low four figures, but is still small change compared to a 5 or 15% drop, which is the kind of loss in sterling we have seen from other Brexit-related events, such as the referendum or Theresa May’s almost-lost election in 2017.
One thing we do know is that the fate of the pound will not be top of the UK side’s thinking. Boris Johnson said that “the pound will go where it will” when asked if he was worried about a 20% drop in sterling from no deal, and after all, such a drop would make UK exports cheaper and make up for new tariffs.
It would, however, make property abroad considerably more expensive unless you lock in today’s rate. Your trader will be waiting for your call if you’re registered.
If you’re not registered you can do that here. It only takes a couple of minutes and you’ll have access to all the top level currency information that you need at this time.
