By Matthew Boyle
We had news out yesterday that the Court of International Trade (CIT) had reinstated President Trump’s “Liberation Day” tariffs, while an appeal against their initial decision is heard. This news came quickly, only a day after the initial ruling, and saw GBP>EUR rates drop by almost a cent.
With market anxiety growing for the US Dollar, its “safe haven” status as a currency is being tested, and as a result the USD is being sold off, which is encouraging investors to back the Euro instead. This means good news for those buying Dollars, with rates close to two year highs, but less good news for those looking to buy Euros. However, with GBP>EUR rates still close to two month highs, its not all doom and gloom, with the cost of a €200,000 property in Spain, still around £4,000 cheaper than it was just a month ago.
We have seen markets settle this morning with the Pound reclaiming almost half a cent against the single currency, and GBP>USD rates returning close to levels seen at yesterday’s market open.
Whilst we have both German and US inflation data released this afternoon it is otherwise a relatively quiet day for economic data releases.
With Trump causing waves in the US and the tariff turmoil still ongoing, it wouldn’t be surprising to see further weakness from the Dollar and in turn a strengthening Euro.
With GBP>EUR rates close to a two month high and within a couple of cents of multi year highs, the opportunity to secure Euros is still an attractive proposition, with many clients choosing to explore the forward contract option we can offer.
Should you have an upcoming requirement speak to your dedicated currency consultant today. We offer several ways in which you can secure currency, allowing you to protect the cost in a currently uncertain market. Speak to us today to help make your ‘money go further’.