The Pound has fared very differently against other major currencies over the past week so how this will affect any upcoming property investments will depend on the currency you need. Sterling lost 0.93 percent of its value against the Dollar but managed to gain by a very significant 1.06 percent on the Euro. This means that the Pound starts the week at the 1.62 levels on the Dollar and at the 1.14 levels against the Euro.

In truth, last week saw a fair amount of poor economic data coming out of the UK, Europe and the US so currency investors had to choose from a bad bunch – Sterling hit a three week low on the Dollar on Thursday after it emerged that manufacturing activity in the US was just slightly healthier than that in the UK. In the UK manufacturing shrank at its fastest pace for over two years with a steep drop in demand for exports. With more manufacturing figures due on Wednesday this week, it’s wise to see if these are once again negative and have an impact on Sterling.

The ongoing sovereign debt problems in Europe however are perceived as much more serious than any stagnant figures coming from the UK which therefore allowed the Pound to grow on the Euro throughout the week. Unemployment in the Euro-zone has now reached levels of 10 percent. Standard and Poor’s rating agency has also lowered their growth forecasts for Europe. It’s hopeful therefore that Sterling may continue to grow on the Euro throughout next week – this may well be dependent on figures at the start of the week that make the two economies easily comparable as PMI data on Services as well as Retail Sales figures are released from both the UK and Europe. This is before both the Bank of England as well as the European Central Bank announce their respective interest rate decisions on Thursday. This may well draw more attention to the fact that UK interest rates are expected to remain static well into 2012 or 2013 which is not good news for Sterling. However, European interest rates are similarly not expected to rise in the foreseeable future and in fact some speculation has started to circulate that they may in time need to be brought back down as the European economy struggles to cope.

There is some hope for Sterling re-strengthening against the Dollar this week as markets closed on Friday to a very negative report on US employment. We may therefore see some Dollar weakening at the start of this week. Both the US and UK trade balance figures are also due to be released at the end of the week which may help investors also interpret the health of each economy.

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.

It’s a despondent start to the new week for any UK based property investors as the Pound has lost out steadily to other major currencies over the past week. Sterling kicks off the week at the 1.12 mid-market level against the Euro and 1.63 against the US Dollar, having lost ground by 1.31 percent and 0.58 percent against the currencies respectively.

This was a sharp fall from the previous week when Sterling had reached some recent highs, in particular the best rates for three and a half months against the Dollar touching a rate of 1.66. Some analysts are suggesting that Sterling was actually over-priced throughout the previous week, as it reacted to bad economic events in Europe and the US, and was ready for a fall bearing in mind the ongoing lacklustre picture being painted of the UK economy. This was emphasised last week as it was revealed that British retail sales fell at their fastest pace in almost a year, consumer confidence edged down further in July and GDP figures for the second quarter were not revised upwards but remained at a measly 0.2 percent. Added to this was the fact that some speculation has started to circulate in the press, that additional quantitative easing may be required to help kick start the UK economy, with interest rates now not expected to rise until 2013.

The Pound therefore found itself under renewed pressure in a week where currency investors were all awaiting a large economic news event which lent more strength to the Dollar as the week progressed – this was the widely anticipated annual speech made by Federal Reserve Chairman Ben Bernanke on Friday. The crux of the anticipation for investors was whether Bernanke would announce another round of quantitative easing for the US to bolster growth (last year he announced the second round of quantitative easing). It was thought that any hint of a third round of easing would help sooth increasing fears about the US economy heading back into recession. In the event, Bernanke did not announce this but did concede that the Federal Reserve would meet for an extra day in September to discuss whether any additional ‘tools’ needed using to help stimulate the economy. It is possible therefore, that the Dollar strength seen throughout the last week may start to subside.

Key events to watch out for this week will be the run of PMI data in the UK which starts on Thursday, with the latest growth figures from the manufacturing and construction industries coming out before the end of the week. US unemployment and non-farm payroll data also at the end of the week could see some re-adjustment in the Dollar. As the European debt crisis rumbles on, following the purchase of more debt by the ECB last week, there will as ever be an element of uncertainty to how markets will react to the ongoing situation. Give me a call or register an online enquiry if you’d like me to watch the rates for you.

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.