Forex News: Sterling up 7.5pc in 6 months, boosting British budgets

Eurozone woes boost Sterling, making it cheaper for Britons to buy a home and live in Spain

By Luke Trevail of TorFX

The Eurozone debt crisis, coupled with changes of government in the region, have shaken the markets throughout May, after a good April for Sterling.

The Pound has benefitted as a result, up 3.4pc in a month, and 7.5pc in 6 months, despite the UK being in a recession. The threat of the Euro weakening further is a real possibility.

The spike upwards last week provided Euro buyers with the best prices since late 2008, whilst sellers of the single currency take the pain.

Should Greece leave the Eurozone problems will still remain, as other countries like Spain may need help. The Euro will stay under pressure unless and until Eurozone authorities take action on a scale hitherto unseen.

In the meantime, British house-hunters in Spain with cash in Sterling will find themselves in an increasingly strong position.

Luke Trevail is a foreign-currency broker working for TorFX, a forex broker established in 2004 to provide foreign exchange and international payments to both individuals and companies. TorFX is authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. Their FCA number is 517320. To verify their authorisation, you can visit the Financial Services Register and search the register using their FCA number.

Comments

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4 thoughts on “Forex News: Sterling up 7.5pc in 6 months, boosting British budgets”

  1. Chris Nation

    back in April I predicted, on the Culture Spain website, that GBP would reach 1.25 by the end of May. I declared myself an amateur at the time. I was right – what do I know?

  2. Ed

    As an estate agent for foreigners in Valencia I can say that 95% of our clients are looking to rent for “2-3 years”, when they think that buying market will become attractive again.

    They aren’t thinking in a devalued euro though, more a new pesata! Although a north/south european split would also be a good option and leave exchange rates significantly better than 1.40/1.50…

  3. Ed 2

    Ironically this is a double edged sword.. For Expats wanting to return to UK (remembering their original investment came to Spain in Sterling) it means a bigger loss on their original investment. Its been a little appreciated reality that the appreciation of the Euro against Sterling in recent years gave a currency compensation to those returning to the UK to offset the reduction in Spanish property values. Thats now eroding again.

  4. peter farnhill

    I am a currency trader, used to be an estate agent but now thats like pulling hens teeth. Yes the pound has moved well in the last couple of months, but its short term in mho, if Greece leave which is now probably 75% chance, the pound will plummet again as the world gives Euro another chance. Dont forget the Uk is back in recession again and the BOE’s forecast yesterday was pretty bad for the pound.

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