Blakemore Walker Chartered Surveyors & Legal Consultants
SPECIALISING IN PROPERTY PURCHASE AND SALES IN ASTURIAS, CANTABRIA & GALICIA
MEMBERS OF THE ROYAL INSTITUTION OF CHARTERED SURVEYORS
PROPERTY AND THE EURO
Will the current political uncertainties in europe, namely spanish and italian government changes reflect in the value of the pound? The pound is holding steady against the euro but weaker against the dollar. The euro is also weaker against the dollar. Perhaps with brexit only 10 months away rates will start to alter.
The pound has been slightly stronger in recent weeks and is currently at just above 1.15. The coming months might see a break out of its 1.10 - 1.20 range.
The pound against the euro remains in a relatively longheld range between 1.10 and 1.20 and this in many respects could be regarded as a benefit due to the lack of volatility. This is true if you are forward planning a currency exchange but generally clients have expectations that the pound is currently weak and that the future bodes well. If I were to guess I would say that the forces of Brexit could weaken the pound from here but in reality even the experts don't know.
The pound is still holding its range between the euro at between 1.10 and 1.20. In recent weeks it has been as high as 1.14 and this was described by the market as a rally. Although a holiday on the continent might now be costing marginally more than 18 months ago, when it comes to a property purchase, then the memory lies with the stronger pound and its purchasing power at 1.40 to the euro.
Well! things move down slowly. The pound is moving closer to the bottom of its range as suggested in the May edition.There could be further to go but in theory the pound is undervalued along with the dollar.
Still the range between the pound and the euro remain between 1.10 and 1.20 but the general election could influence this rate depending on the outcome. A strong Conservative majority could see some strengthening in the pound, but whatever happens there will still be the Brexit issue to resolve in the coming years. Some market experts say that fair value is probably closer to 1.20.
The pound has risen in recent weeks to 1.20 and now stands at just above 1.15 against the euro. The market pundits are saying that dollar strength and Brexit comments by UK politicians will likely cause a certain amount of volatility. One would expect a range to be held between 1.10 and 1.20 but a break through at either end could be interesting!!
HISTORIC LEVELS -
OCTOBER 2016 - 1.10
APRIL 2016 - 1.25
JANUARY 2016 - 1.35
APRIL 2015 - 1.40
FEBRUARY 2015 - 1.33
OCTOBER 2014 - 1.28
AUGUST 2014 - 1.26
JANUARY 2014 - 1.20
OCTOBER 2013 - 1.20
JUNE 2012 - 1.25
FEBRUARY 2012 - 1.19