By Luke Dyson
As we draw to the end of the month & summer holidays period, overseas property activity will begin to pick up following people coming back from annual breaks.
We have seen a very strong week for sterling gaining heavily on the euro, pulling up to the highest point in the last 2 years since July 2022. This strength has been heavily driven by European inflation data (Germany & Spain) undershooting expectations, with Germany’s data coming in at 2% year on year, down from 2.6% in July.
This was followed by Spain’s drop of inflation from 2.9% to 2.4%, indicating a weakening eurozone inflation figure due at 10am today.
This will likely prompt the European Central Bank to cut interest rates more aggressively in the near future, potentially weakening the euro in the short term, driving pound relatively higher as we have already seen off the data that’s been released so far.
With where Sterling is priced at present this could be a good buying opportunity, given where the market has been recently. There is a lot of uncertainty moving forward in which way the market could go.
If you have an up and coming currency requirement for buying euros, this could be worth acting on. It could be short lived, depending on up and coming data releases.
€150,000 euros are now £1,500 cheaper to buy than at the beginning of the week. Please get in touch with your currency consultant at A Place in the Sun Currency to discuss a strategy moving forward to make the most of the current market conditions.