By Grace Smyth
Sobbing and Selling: The Day Emotion Hit the Economy
Last week, global currency markets were shaken by an unexpected scene in the House of Commons. UK Chancellor of the Exchequer, Rachel Reeves, was visibly emotional as she presented the new welfare bill, leading to an unanticipated Sterling sell-off.
While her emotional response was human and heartfelt, the markets responded swiftly and unsympathetically. Sterling fell sharply, particularly against the Euro—a tough hit for a currency already under pressure. Speculation quickly spread about her political future, although both Reeves and Prime Minister Starmer confirmed her continuation in office.
This is a textbook case of financial markets reacting to rumours, not facts—and it’s also potentially a prime buying opportunity for those needing GBP, EUR, or USD for overseas commitments.
Why the Pound Is Still Under Pressure – and What It Means for You
Sterling’s situation remains fragile. Markets anticipate a Bank of England interest rate cut in August, which would lower the UK base rate to 4%. Combined with upcoming tax hikes hinted in the new welfare bill, consumer spending is at risk, and confidence in Sterling could drop further.
If you’re planning to buy property in Europe or the US, pay overseas invoices, or protect your margins, these rate fluctuations could be your window of opportunity.
💡 Pro Tip: You can secure today’s rates with a forward contract, locking in value with just a 10% deposit.
Pound vs. Dollar – Room to Climb, but Risk Remains
Despite robust US labour data in June, investors remain wary due to new tariffs from President Trump. While the Dollar holds strong for now, this uncertainty could present an ideal scenario to secure your USD needs while the GBP-USD rate is hovering near its best levels since 2022.
If you’re buying real estate or planning large USD payments in the near future, don’t wait for rates to turn.
✅ Lock in now with a forward contract or limit order to capture upside without missing the peak.
Sterling-Euro Outlook: More Risk Ahead Than Reward
As confidence in the US Dollar weakens, the Euro is gaining ground, further tightening GBP-EUR exchange rates. The result? Fewer Euros for your Pounds—consider acting quickly.
If you need to buy Euros to purchase property, pay builders, or make business payments, now could be the time to protect yourself.
Key Economic Events to Watch This Week
While this week is relatively light on economic news, here are some key releases that may affect exchange rates:
| Date | Time (GMT) | Currency | Event |
| Monday | 09:00 | EUR | Retail Sales (May) |
| Tuesday | 04:30 | AUD | RBA Interest Rate Decision |
| Wednesday | 02:00 | NZD | RBNZ Interest Rate Decision |
| Wednesday | 18:00 | USD | FOMC Minutes |
| Thursday | 12:30 | USD | Initial Jobless Claims |
| Friday | 06:00 | EUR | Consumer Prices (HICP) |
| Friday | 06:00 | GBP | GDP, Industrial & Manufacturing Production (MoM May) |
| Friday | 12:30 | CAD | Employment & Unemployment Rate |
| Friday | 18:00 | USD | Monthly Budget Statement |
FAQs About Buying GBP, EUR, or USD for Property and Payments
1. Is now a good time to buy GBP or EUR for property purchases?
Nobody can predict the future, but current volatility means you can potentially secure favourable rates. Use tools like forward contracts to lock in rates.
2. Can I lock in today’s rate even if I’m not ready to make the payment?
Absolutely. A forward contract allows you to secure rates now with just a 10% deposit.
3. What if exchange rates fall further after I buy?
That’s where a stop-loss order comes in—it protects your downside by setting a rate floor.
4. How do I buy currency for transfer to a bank account?
You can book your currency via a trusted foreign exchange specialist such as A Place in the Sun Currency and request physical delivery to your account, or a third party beneficiary account.
Conclusion: Volatility Creates Opportunity
The emotional moment in Parliament may have rattled markets, but it also opened a door. Whether you need GBP, EUR, or USD, this could be a key time to act decisively, manage your risk, and secure good exchange rates. Don’t let uncertainty cost you more. Contact us today to discuss locking in your rate; explore your options, and ensure your international payment or property purchase stays on budget.