Over the weekend we saw governments around the world impose stricter controls on the movement of people due to COVID-19 and the increasing number of reported cases and deaths. Today, Australia began living under strict new lockdown rules as the number of cases increased above 1,600 and authorities denied a cruise ship entry carrying hundreds of people onboard complaining of respiratory problems. Signs of economic and social stress have started forming with long queues forming outside offices of the main welfare agency across the country.
The German government is preparing to setup a €600bn stabilisation fund, aimed at supporting companies running into difficulties. €100bn will be used to buy shares in struggling strategic businesses to stop them from collapsing.
This morning at the time of writing, the euro is up 0.72% against the Australian dollar and the interbank exchange rate is currently at 1.8555. Today, the market is light on economic data. Eurozone data being released today at 3pm is consumer confidence for March. This is forecast to come in at -14.2, but could find that this comes in sharply lower considering everything that is going on. Later this evening Australian economic data is released at 10pm UK time. Australia manufacturing and services purchasing managers index is forecast at 50.2 and 49.0 respectively. A figure above 50 indicates expansion in the sector and a below 50 indicates contraction.
With all the market uncertainty and volatility, if you are looking to buy or sell a property over the next 12 months and do not have the funds available now, you could discuss the option of a forward contract, which would enable you to secure an exchange rate today for a future payment and limit the risk of the changing currency markets. Get in touch using the form below, I’ll be happy to contact you personally.