Costa Tropical property more affordable, as pound hits record highs

Good news if you plan to buy property on the Costa Tropical! Late last month, sterling hit a 14-month high against the euro, at 1.2258.

By contrast, a year ago on March 12th the pound was at just 1.1403, meaning it's now up by +7.5% or 8 cents. To put this into context, a £125,000 transfer to Spain will now get you +€10,688 more than last March. So, a Costa Tropical property is clearly more affordable now!

Will Inflation Focus This Week Push The Pound Higher?

The Pound is set for a busy week with some expecting that this week’s focus on inflation – with the actual CPI inflation figures tomorrow and the quarterly inflation report on Wednesday – could push the Pound higher if inflation once more comes in well above target. This could provide further momentum to Sterling although much will depend on what the inflation report actually says and also how the subsequent comments from the Bank of England Governor Mervyn King are interpreted.

Pound pulled down to 1.16 following last week’s GDP slump

The Pound is starting the week at the 1.16s against the Euro – lower than last Monday when we came off the starting blocks at 1.17 but the Pound has actually regained some ground over the weekend from lower falls to 1.154 on Friday and 1.153 last Wednesday when we saw decidedly low GDP figures knock the Pound down.

This kind of volatility is becoming ever more normal of late as uncertainty over how well various economic recoveries are actually progressing is called in to question.

Pound and Dollar In For A Busy Week

We are starting the week with the Pound in a weaker position against the Euro, having fallen to 1.17 from 1.18 at the start of last week. Many clients have been surprised that this is the case as overall sentiment about Europe and the future of the Euro is fairly negative with the latest problems being the issues of the break-up of the coalition majority in Ireland over the weekend as the Green Party removed their support.

Will the Pound push higher against the Euro?

For anyone UK-based buying property in Europe, a change has occurred in the cost price to the property of around 4 percent over the past two weeks, purely through the Sterling to Euro exchange rates. Over the past two weeks, the Pound has moved up from the 1.16 levels against the Euro, first reaching the 1.20s and then faltering again at the end of last week to find itself at around the mid 1.19s at the start of this week.

Difficult Week Ahead For The Euro

On last week’s blog we reported that the Pound was at around the 1.16 levels against the Euro – this week we are starting in a much brighter position with the rate up to 1.20. This is great news for anyone UK based who might be purchasing property or moving funds over to Europe.

Will these kind of levels last? The main reason for the weakening Euro has been ongoing concerns regarding the sovereign debt issues that refuse to go away.

Exchange Rates For The New Year

If you are buying or selling a property this year, or moving overseas, January is a good time to start talking to a currency broker to discuss when in the year you will be needing the transfer and discussing what sort of rate you want to achieve. The most money is saved on overseas property purchases by those that not only use a broker to avoid the bank’s poor rates of exchange but also use all the tools available to them to ensure that they catch the very best exchange rate in the constantly moving markets.

Euro Skates On Thin Ice In Run Up To Christmas

…It’s the last currency blog of 2010 and what a year it has been for the exchange rates. For those buying or selling property whether as an investment or for reasons of moving abroad the movements that have occurred in exchange rates could have affected the cost of the property by 11 % for a property purchased in Euros, 15 % for Australian Dollars and 13 % for US Dollars over the past year.

Pound Starts The Week On The Down Turn

Monday has opened with the volatile momentum that we may continue to see over the next five days. The week is starting with the Pound moving down from the 1.19s to the 1.18s against the Euro and the 1.58s to the 1.57s against the US Dollar as some poor housing data has taken a hit to the Pound. The housing sector is often the Achilles heel in the UK economy with the Rightmove index this time showing a price decrease of -3% in stark contrast to the strengthening manufacturing sector which we saw last week conversely boost the currency.

Will the Euro Fall Again This Week?

This week is beginning with the US Dollar on the downturn and the Euro holding steady following a tip in the balance between the two major currencies last week.

The recent uncertainty surrounding the impact of Irish debt on other European nations which had pulled the Euro down in the earlier part of last week, has been subsiding in response to announcements from the European Central Bank that various support measures will be extended.