GBP/EUR rates have had a rollercoaster of a month, being as high as 1.399 and as low as 1.334. Budgets for property purchases as well as business transactions overseas have been made more expensive or cheaper by 4 figure sums or more depending upon your transaction amount.
The main reason for this large bump up in favour of Euro buyers at the end of the month was mainly attributed to news coming from the US which was received extremely positively by the global markets.
While there was no change in the base interest rate for the US economy, the FED did hint that a rate hike could occur as early as December.
While only really a rumour, this small hint was monumental in increasing the value of the Dollar. Since the financial crisis in 2007/8 the timeline for when a country would finally raise rates has arguably been the single largest determinant for a currencies value.
The reason why this has such a sway on GBP/EUR rates is that the USD/EUR is the most heavily traded currency pairing in the world. Any change in the value of one normally results in the opposite change in the other. In this case USD strength sucked capital out of the Euro as investors hope for higher returns on USD soon, which in turn weakened the Euro against Sterling.
While this is a fantastic opportunity for Euro buyers, those who have a GBP/EUR requirement must remember that these change in rates are not a reflection of any changes in the performance of the UK or Euro economy. As such they are artificial and unlikely to be a permanent feature on the currency markets.
Real data released today showing inflation in the EU is actually much healthier than that of the UK proves this, and is why rates have moved away from the highs of the past 24 hours and are flirting with being back at 1.38.
I strongly recommend that anyone with Euros to buy should contact me on 01494 787 478 and ask the reception for Joshua to discuss a strategy for your transfer enabling you to maximise your Euro return. Even if your GBP/EUR requirement is not for a few months, these current rates of exchange can be pegged to avoid any further losses. As a final point I have never had a problem beating the rates of exchange offered elsewhere [email protected]