Great time for British buyers with 2 year high for GBP/EUR

Over the past couples of months, we have seen some of the calmest movements in currency markets between the major currencies such as GBP/EUR and USD/EUR. Having said that, at present the GBP/EUR is currently trading at the highest rate we have seen since August 2022. What does this mean? Essentially, this is the best time to buy euros with pounds for nearly 2 years.

Hence, now is the perfect time to purchase the French property that’s been calling your name.

But these things do not always last forever, which is why now is an important time to consider upcoming factors that may cause significant fluctuations between currency pairs.

What to consider…

FX markets are highly volatile and not always easy to predict. Having said that, using historical events data, we can see typical trends in currency pairs (aside from the likes of an Armageddon throwing a spanner in the works).

As you most likely have seen, Rishi Sunak has just called for a general election on July 4th, which is considerably earlier than expected. Some may see this as a spanner due to the shock timing, however, looking back historically data has typically shown the value of the pound to suffer in times of political uncertainty.

To add to this conundrum, inflation data and interest rates are a considerable driver in currency markets. Currently we are waiting on the US, UK and EU central banks to announce their positions on interest rates and whether they are holding put or dropping.

Understanding your buying position

Before you go on you start the buying process, we recommend starting to think about the impact of foreign exchange. And if you are holding a different currency than Euros, it is very important to consider how you will exchange your funds, as exchange rates can substantially impact the final cost of the property.

Exchange rates are constantly fluctuating. Imagine getting to the point of buying your dream property, and the price is different from when you made the offer. That’s the reality of the foreign exchange market – small changes make BIG differences when you exchange a large amount of money.

For this reason, it may be worth considering opening an account with a foreign exchange specialist before you start looking at properties. This allows you to develop a better understanding of the currency exchange market and get comfortable with the process of exchanging funds.

Using a Currency Specialist

A currency specialist will assess your situation, timeframe, and budget to help plan any payments and give you complete transparency over the market and how it is behaving.

You can also take advantage of services like regular updates on available rates to help you plan your budget. Having the account already in place also means that the moment you find your dream property, you’ll be well placed to act – but don’t worry, there is no cost or obligation to use the account if you don’t find a suitable property.

You could even fix the rate beforehand if the rate is favourable using a tool called a forward contract*. This allows you to avoid any fluctuations that can affect the final price in sterling. Alternatively, you can track or even target a specific rate, which could help you maximise your money in France.

Exchange rates play a vital role in determining your budget, and that’s why it’s so important to do your homework before you go. A currency exchange specialist like Moneycorp can offer you competitive rates and efficient service and give you access to an exchange specialist who can guide you through the process and explain the tools available for overseas payments.