In this update of the Euro rate forecast, I’ll tell you how today the Pound continues to weaken in value against the major currencies. We have seen the Pound fall around 5 cents against both the Euro and US Dollar since the beginning of May.
Weak economic data from the UK and Eurozone
This morning we saw the Nationwide House Price Index, reflecting the average change of house prices across the UK, come in lower than expect at 0.6% against a forecast 1.2%.
In the Eurozone, the Consumer Price Index (CPI) in Italy came in weaker at 0.1% against a forecast 0.2%, and Germany also came in weaker at 1.4% against a forecast 1.6%.
Who will be the Next British Prime Minister?
We will only know the results of who the next Prime Minister will be shortly before Parliament’s summer recess in July. There are 11 candidates now in line for the job, with ex-Foreign Secretary Boris Johnson looking like the bookies’ favourite, closely followed by Environment Secretary Michael Gove.
So, it would be no surprise to see the value of the Pound continue to fall, with over a month of uncertainty over who the next Prime Minister will be, coupled with little to no progress on the Brexit negotiations.
If you have sold or are in the process of selling a property abroad, then the weakness in the Pound will continue to work in your favour to get more Pounds back on your Euros. If you are in the process of buying a property abroad, then it might be prudent to secure your Euros sooner rather than later.
If you do not have the funds available now, we can always secure your currency on a forward contract, allowing you to secure an exchange rate today for a future payment. This requires a 10% deposit, with the balance being paid on a date of your choice up to one year ahead.
To discuss how I can assist and keep you abreast of market movements and economic information, please do not hesitate to contact me.