I reported last week that Sterling had lost out by 2.73 percent against the Euro in a single week following two weeks of negative data with poor UK GDP, and the worst manufacturing figures for twenty months signalling that the UK recovery was certainly fragile. The clash of UK and European interest rates on Thursday last week saw both economies hold their interest rates for another month. This was mostly expected and despite some more poor data from the UK, including a higher trade deficit, the Pound climbed on the Euro on the week overall, little by little regaining some of the lost ground on the Euro. Sterling was helped along by speculation circulating surrounding European debt, including claims towards the end of the week that Spain may be next in line for a European bail out as it was suggested that Santander experienced a failed bond auction. Comments from the European officials last week that seemed to hint that European interest rates may rise by another 25 points next month did not help lift the Euro. In total, Sterling gained on the Euro by 0.76 percent meaning that we start this week with Sterling in the early 1.13s on the Euro. This is still not the kind of exchange rate that makes pleasant listening for any UK property investors who need to make an exchange into Euros to purchase European property. If you want to know how to handle your exchange, it’s a good idea to give me a call or make an online enquiry letting me know the time frame for your property completion. I can talk you through the trading options available for you to decide how you would like to proceed and help you feel confident that you are more protected from any further currency fluctuation.

Despite clawing back ground on the Euro, Sterling dropped against the Dollar throughout last week by 1.21 percent overall so we start this week around the low 1.62 level. The US economy was one of the few major economies that experiences positive economic data last week  - the trade deficit narrowed,  the import price index was healthier and jobless claims had also reduced. The Dollar was also very much helped by the lingering debt problems surrounding European nations such as Greece as a clear flow of funds by currency investors into the ‘safe-haven’ currencies gave a lot of support to the Dollar.

Key events for the UK this week will be retail and consumer figures on Tuesday, unemployment figures on Wednesday with further retail figures on Thursday. The European Central Bank report on Friday will provide a further detailed analysis of the European economy from the Central Bank and may shape the sentiment of currency investors and cast some influence of the Sterling Euro pairing.

For further advice or 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.