Many of my clients are asking the same question when buying Euros and that is ‘Are we likely to see GBPEUR rise back above 1.30 before the EU referendum or should we buy our Euros now?’ If I had to buy Euros with the Pound before June 23rd quite simply I would buy next week off the back of a spike in the market.
With UKIP leader Nigel Farage stating remaining in the EU means we are more likely to sustain terror attacks like Brussel’s due to the EU allowing free movement of terrorists and criminal gangs, it appears the ‘out’ campaign has gained momentum and that is why the Pound lost ground against the Euro throughout this weeks trading period.
The closer we get to the EU referendum volatility will increase and therefore the Pounds value will fall. I expect come June 23rd GBPEUR exchange rates will sit in the low 1.20s or even as low as 1.18.
Many banks are predicting an exit from the European Union could cause GBPEUR to reach parity however I disagree. I believe the UK economy is in a better state than the European and therefore rates will fluctuate around 1.10.
For people buying properties in Europe this year this could have a serious impact on the price you pay for your property. For example a €200,000 purchase over the last 2 weeks has cost approximately under £160,000 where as if the rates dropped to 1.10 a €200,000 purchase would cost £181,818 over £21,000 more.
The question I ask all my clients is why wait? If you are hoping the rates will rise to the highs we saw in 2015 you would need countries such as Greece to stop paying their debts and threaten to leave the EU and the Bank of England to start raising Interest Rates. This is very unlikely to happen in the next 12 months.
The currency company I work for enables me to achieve clients up to 5% better exchange rates than the high street banks and other brokerages. I specialise in property purchases and sales within the Eurozone. Therefore if you are buying or selling a property in Europe this year and want to save money by achieving the best possible exchange rates but also want help in timing your transfer, get in touch by emailing me on firstname.lastname@example.org. The more information you provide me, the more information I can provide you, below is a list of what I require: your name, brief description of requirement (buying a house in France), amount in Euros, budgets, timescales, telephone number and convenient time to call.
PLEASE NOTE DUE TO THE MARKETS BEING CLOSED FOR THE BANK HOLIDAY I AM NOT IN THE OFFICE UNTIL TUESDAY MORNING. HAVE A GREAT EASTER BREAK AND I LOOK FORWARD TO SPEAKING WITH YOU THEN.