Sterling vs. Euro Currency Rates can be an important consideration for buyers of property in Fuerteventura and Spain as well as those looking to repatriate after having sold their properties with Goldacre Estates. Here is the latest weekly update on what the rates are doing:
Last
week saw an interesting week on Sterling/Euro with Rallies in both directions,
creating decent opportunities for both buying and selling the single currency.
The early part of the week saw the pound in general decline, with Mario
Draghi’s Euro positive rhetoric ringing in many traders’ ears. It was then his
counterpart Mervyn Kings turn to move the markets later in the week.
At
Wednesdays Bank of Englands quarterly inflation report, King poured cold water on the
widespread rumours that a UK base rate cut was imminent. His read on the
situation is that a cut would further hamper financial institutions’ ability to
lend and would in fact be counterproductive to economic growth in the UK.
With
the already low interest rates unlikely to be cut investors rallied to the
Pound, safer in the knowledge that their yield would not be reduced and thus
the exchange rate moved up.
It
appears then that the UK with its expectation of zero growth and no apparent movement
on rates or quantitative easing, is now unlikely to be the main driver on the
GBP/EUR cross in the short term. The storm clouds that still hang over the
Eurozone seem a much more likely cause of market movement.
Although
this week has seen no real negative news from the single currency area; the
effect has realistically seen a sideways drift rather than any real strength.
The fact that King saying there will be no rate cut can move the market a whole
cent in one afternoon session is testament to how weak the Euro is.
The
weakening in UK economy will probably keep the rate in check and potentially
prevent enormous rallies back to pre-2008 levels but in the here and now, a
near 4 year high should still be seen as attractive if you need to purchase this
year; fixing a forward rate in the mid 1.20’s would suit most budgets when
compared with last year when rates were as low as 1.13.
Weekly Economic Data that may affect
exchange rates
Monday – It’s a relatively quiet start to the week.
The only UK data of note is the latest House Prices from the Royal Institute of
Chartered Surveyors showing the health of this sector. In the Eurozone there
are some minor Wholesale Prices. Elsewhere there are some Retail Sales numbers
from New Zealand.
Tuesday – Lots of data today compared to yesterday. In
the UK we have: Inflation Numbers (CPI and PPI), Retail Prices, House Prices,
and the BoE Inflation letter by Mervyn King. In the Eurozone we have: French
Inflation data, French GDP, German GDP, Spanish Inflation Data, Portuguese GDP,
EU wide GDP, Industrial Production and surveys on Economic Sentiment. So much
that could affect GBP/EUR rates. Stateside we have the latest inflation
numbers, Retail Sales, and a measure of Economic optimism.
Wednesday – Again a very busy day, but this time all
from the UK and US. Starting in the UK we have the all important Bank of
England minutes. This is followed by a speech by BoE governor Mervyn King. In
addition we will see various jobless measures including the Claimant Count
& Unemployment Rate. Over in the states we have another round of inflation
numbers, Mortgage Applications, Industrial Production and numbers on the
Housing Market.
Thursday – Today we will see the latest UK Retail
Sales, which are an overall barometer of economic activity. In the Eurozone
there are some inflation numbers which could dictate interest rates. Stateside
we have Building permits, Jobless Claims, and the Philadelphia Manufacturing
Survey. We end the day with more inflation numbers from New Zealand.
Friday – There are no UK
releases today. In Europe we see the most recent Trade Balance numbers and some
German inflation data. We will also see the latest Canadian Inflation numbers.
Over in the states we have the latest measure of consumer sentiment.
If you are looking to make an exchange contact Goldacre Estates Sl http://goldacreestates.com or call 0034-928535044 for more information about how we can help save you money when buying and selling propery abroad.
Labels: Currency, euro, exchange, fuerteventura, goldacreestates, olympics, property, spain
Begining August 24th this year Fred Olsen Express in Canary Islands Spain will be offering a new
service from Las Palmas in Gran Canaria with Morro Jable and Puerto del
Rosario in Fuerteventura 16 times per week with prices starting at €11.50 each way.
Sailing time is estimated at 90 minutes to Morro Jable and 70
minutes from there to the Capital Puerto del Rosario. It also offers a daily crossing to
Lanzarote (Playa Blanca – Corralejo) from only €2 per person each way. These
schedules can connect from Santa Cruz de Tenerife via Gran Canaria (Santa Cruz
Tenerife-Las Palmas-Agaete-Morro Jable) departing every Friday and Sunday and
returning any day of the week, with prices starting at €17.91 per person each
way.
