By Paul Newfield
As the world lurches from one troubling event to another, the latest involving yet another war in the Middle East may have one surprising positive – whilst it may not be a worry to see increasing in price, petrol costs at the pump may be the key to seeing a soaring pound, which may essentially cut the price of your property purchase in Europe. A good thing too, as stock markets worldwide have taken a tumble. Could we be seeing the beginning of a new era of inflation? Uncertain, but it has made it more likely that any planned interest rate drops will likely have to be scaled back or postponed.
If interest rate cuts in the UK are postponed, the Pound is likely to benefit.
Last week, we had already seen the Pound increase against the euro, but still sitting a few cents lower against the dollar than it had been a couple of months ago. It terms of data releases for this week we are expecting to see more of the same.
This week is very thin on the ground in terms of economic data from the UK, with only a speech from Governor Bailey on Thursday and goods, industrial and manufacturing figures on Friday along with the all important GDP month on month, to have the ability to strengthen the GBP. Elsewhere we have mostly Antipodean, American and Chinese data including business confidence, trade balances and house building. US inflation is noteworthy on Wednesday at 12:30pm UK time.
With the lack of data and as geopolitical tensions take centre stage, at least for this week, make sure to keep in touch with your currency consultant here at A Place In The Sun Currency to make sure we can help to make your money go further.