Last week was a chaotic one, with Greece’s debt problems hitting the news more than ever and speculation rising that the Eurozone is going to have to significantly adapt to survive in the long term – with some believing that it’s possible that certain nations may end up leaving the Eurozone.

You won’t be surprised to hear that all the commotion allowed Sterling to grow on the Euro by a whopping 1.98 percent over the course of the week. This is of course, good news for anyone thinking of purchasing property in Europe. We start the week, with Sterling up to a rate of 1.162 on the Euro, which by recent standards is a very good mid-market rate. Don’t forget that you can lock into a preferable exchange rate in advance of your transfer by calling me to discuss a forward contract. Last week’s movement was not only due to a lack of clarity emerging about plans for the Euro-zone bailout fund following the G20 meeting, but also due to the European Central Bank reducing interest rates on Thursday. Interest rates were taken down from 1.5 percent to 1.25 percent and some commentators believe that a repeat move could be taken next month.

This is good news to the ears of those hoping that the Pound will continue to grow on the Euro; although interest rates in the UK are still comparatively low (at 0.5 percent) monetary policy in the UK is starting to look relatively more stable than in Europe which could help make the Pound more attractive and cause it to strengthen. The fact that European interest rates have been rising is something that has kept Sterling on the back foot for a long time.

As ever however, it is not all plain sailing for the Pound. Whilst Sterling accelerated on the Euro last week, it diminished against the Dollar by 0.6 percent meaning we start this week at around the 1.603 level. This is partly because it tracked the beleaguered Euro against the Dollar but also because there are still question marks over the UK economy and whether it is heading back into recession. Weak data from the UK manufacturing and services sectors this week did not help to dampen this concern.

As markets continue to await for better confirmation about what is happening with Greece’s bailout deal, its tricky to know which way exchange rates will turn over the coming week so this will be a key issue to watch out for. There is also some hefty UK data due - on Tuesday in the areas of manufacturing and industrial production and on Wednesday, the latest figure about the UK trade deficit will be another key indicator of how likely it is that the UK is heading back to recession. The Bank of England’s monthly policy decision is then due on Thursday – were there to be any kind of increase again to the amount of Quantitative Easing being used to shore up the economy, Sterling could be vulnerable. If there is no change, perhaps Sterling can push up again on the Euro at least for a second consecutive week.

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.