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Sterling Euro exchange rates in May – What can we expect? (Daniel Wright)
With positive growth figures for the U.K and interest rates being cut in Europe the signs are that we are potentially starting to turn a corner for the Pound against the Euro which is great news for those looking to buy property over in France in the near future.
Investors will however be closely monitoring how economic data for the U.K is this month and any hints of the U.K taking one step forward and two steps back will not be looked upon greatly for the Pound so this is one thing we need to be aware of. My personal opinion is that things are indeed on the up for the U.K and although I do not expect major economic growth until at least 2014 I think we should now be able to tread water and avoid the dreaded recession for the foreseeable future unless we do see another major incident within the Eurozone that could dent the U.K too.
With the major economic releases out of the way and the recession avoided the spotlight does not appear to be back on Europe and any comments from members of the European Central Bank regarding future fiscal policy will be taken extremely seriously this month. Just last week following the ECB interest rate cut, at a press conference held by head of the European Central Bank Mario Draghi the mere mention of possible negative deposit rates led to the Euro losing ground by almost a cent against Sterling in a matter of minutes, so if this policy is adopted in the future we could see further Euro weakness.
All in all I feel that we are now more likely to see Sterling go back above 1.20 than we are to see it go back below 1.15 however in such a fragile market if you are looking to buy Euros with Sterling in the near future then it is key that you keep a very close eye on the markets as things can change very quickly and even the slightest movement in exchange rates can drastically effect the price of your overseas property.
2013-05-03 03:50:33
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