Daily Archives: July 10, 2012
Sterling still close to four year high against the Euro yet dropping against most majors – What is next for the Pound?
The pound has made great progress against the Euro of late edging closer to a four year high and leaving a smile on the face of those looking to purchase a property overseas in the near future. If you are in this position you are probably currently wondering whether or not the charge will continue or whether this is the best we will get for some time.
To be honest, anyone that says they know the answer to this must by lying as there is so much going on behind closed doors at present that it is really hard to tell just how deep these underlying problems are not just for the PIIGS of Europe but also for the U.K – Our banks are taking a bashing again and there may well be compensation claims a plenty further down the line due to the latest scandal… Just think how many Billions were lost on PPI claims, this surely cannot help. The further Europe finds itself in trouble the more likely the Pound will continue to struggle against most other major currencies as we are so exposed to these European problems and personally I don’t think we are officially out ofhot water until the BOE start mentioning interest rate hikes again which is an awful long time away.
In short, if you are in the process of buying a property abroad or may be looking to buy one in the near future it may be sensible to secure the currency required for the property on a forward contract whilst rates are indeed favourable. A forward contract is where you can fix a rate for anything up to two years in advance for just a small deposit, meaning there are no nasty surprises that can pop up when you come to paying off your balance, it also means that you can budget accordingly and get on with the other important matters with the purchase.
If you feel a forward contract is of interest or you do have a currency transaction to carry out and you want to achieve the very best rate of exchange along with a great level of service then feel free to contact me directly firstname.lastname@example.org and I shall be more than happy to help you.