EDITOR’S NOTE: As 2014 draws to a close the Pound is near multi-year highs against the Euro, making Spanish property cheaper for investors with Pounds. Foreign currency exchange specialist Luke Trevail looks at the factors driving exchange rates, and what the near future might hold.
As the end of year comes closer, focus should fall into what 2015 might bring to the UK economy.
The pound has been suffering from a winter lasting more than 5 years but with the much-fabled green shoots of recovery now finally emerged next year Sterling may come into full bloom once again.
The Bank of England are lending weight to this theory, with at least two of the nine policy makers wanting to raise the interest rate from 0.5%, where it’s been stuck since March 2009, to 0.75% in last month’s committee meeting. A small but significant step towards certain sterling strength.
Chancellor George Osborne may not be everyone’s cup of tea, but in the delivery of the Autumn Statement on Wednesday this week his prediction that the UK economy would grow by 3% this year, up from a previous forecast of 2.7% and see continued steady growth of around 2.4% in 2015 further lending support to the pound.
In the eurozone the usual woes continue, with Mario Draghi the ECB President seriously having to consider Quantitative Easing early next year. A figure of €1 trillion has been suggested but until something happens it’s difficult to be more specific.
The market for euro sellers will not benefit from this news, and should be, if one was needed, the warning shot to kick start you into some action to offload any euros that you may still have.
The New Year looks like it will bring some good news for those wanting to move funds into Spain, but gloom for anyone looking to sell euros and buy pounds, so don’t wait for midnight and act now!
Wishing everyone a Merry Christmas.