The Pound has moved down – but only slightly – overall against the Euro for the first time in several weeks. Overall, since my last blog Sterling has dropped off by 0.51 percent on the Euro meaning we start this week at a rate of 1.237. This was a small dip from the position at the start of last week when Sterling was on a three and half month high on the Euro – this is clearly still a very good rate for recent times; if you need a Sterling to Euro exchange for a property transfer, the slight wobble, could be a key sign to book the exchange rate in now whilst the going is still good.

The reason that Sterling lost out to the Euro over the past week was partly to do with German GDP figures which came in better than expected. The Bank of England quarterly inflation report also crucially left the way clear for more quantitative easing in the UK addressing weaknesses in the UK economy. There were also signs that the uncertainty around the Greek political situation, as well as the fact that Moody’s downgraded 16 Spanish banks, meant that investors were starting to become much more cautious – choosing the much safer US Dollar, as an alternative to the Euro rather than the Pound.

This all meant that the Pound had a bumpy week against the US Dollar - although overall it rose by a small 0.22 percent after some recovery meaning we are now at a rate of 1.580. Ongoing concerns about the UK’s financial and trading ties with Europe are expected to keep some downwards pressure on the Pound against the US Dollar which may continue to strengthen. The Pound has lost 2.5 percent against the Dollar over the past month. Anyone with property exchanges to make in US Dollars is welcome to give me a call to discuss how they can protect themselves from further movements.

This week sees some very significant events meaning that currency movements may be volatile. Tuesday sees inflation, mortgage, house price and retail data from the UK – all of which are significant economic indicators. Wednesday sees the release of the Bank of England minutes – any further indication in these of more support for more quantitative easing in the UK could further damage the Pound. Lastly, Thursday sees UK GDP figures for the UK which could confirm or contradict the ‘return to recession’ – again very significant for exchange rates going forward.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.