By Robin Haynes
The Euro has reached its cheapest against the Pound since mid-September, after the surprise resignation of French Prime Minister Sébastien Lecornu after less than a month in charge.
The shock move, only a day after the announcement of a new Cabinet, leaves France mired in political stagnation, which has reverberated around markets, causing the single currency to drop in value this morning.
With an improvement of nearly 1c in rates, a typical €200,000 property purchase is around £1,500 cheaper today than it would have been on Friday.
With the Labour conference now finished, we return to speculation around the November Budget, and how Rachel Reeves proposes to balance the books in very difficult economic circumstances. Prudent readers may wonder if there can be much improvement for the Pound, until we have a clear picture and credible economic plan.
There is very little important UK, European or US economic data out this week, aside from some central bank speeches. So we could be in for a steady week on the currency markets – perhaps a chance to consider fixing your rate in advance, if the French political crisis has improved rates for property buyers – any talk of snap elections in France would be likely to send the single currency into further volatility.