Tips, Viewing Trips & The Olympics! What a Time to Be Viewing in France!

GBP/EUR saw a 23-month high of over 1.1925 this month from where it started July at 1.1769. With elections across the board in the UK, France and the US and inflationary and interest rate levels under a watchful eye globally, we are currently entering a period of expected high volatility.

Regardless of where you are in your journey of moving to France, it is very important that you are very aware of your budget and, most notably, the exchange rate. Exchange rates are highly volatile and impacted by a multitude of factors that are not always predictable.

If you are currently contemplating starting your journey mid-way through or completing next week, it is in your best interest to be familiar with the current exchange rate market. If not, you could find yourself surprised when the cost of your property has changed in your local currency because the exchange rate has moved. For some of you, that may have been a positive change; however, it may have been even better if you had been in touch with a currency specialist.

The overall upward movement between GBP/EUR is a positive one for those using GBP wishing to purchase euros, essentially making your purchase cheaper than originally expected. For example, since the beginning of July, we have seen a low of 1.1769 and a high of 1.1925. For somebody with a budget of £500,000 worth of euros, the difference translates to roughly €7800 in a very short amount of time. However, since that high, we have already seen the exchange fall back down, making that saving a little less. This highlights the importance of seeking expert market guidance to manage your payments and create a plan and budget range to work with your market specialist to achieve.

Using a currency specialist opens the door to a multitude of options for you. You have access to a competitive rate of exchange and the expertise of a currency specialist whose role is to help you plan your transfer to make the most of your money. They will understand your situation and support you by tracking the rate and guiding you on when the best time to exchange your currency is, making your money go further. Here is an example of a few of the tools available to you and how they can benefit your budget:

Spot contract – A spot contract is an agreement between you and your FX provider to exchange money and buy foreign currency at the present exchange rate. This is the most common and traditional form of currency exchange and is suited to addressing any imminent currency transfer needs you may have.

Forward contract – This allows you to fix a rate of exchange up to two years in the future in advance of a payment. This tool is very popular among property buyers as it allows them to fix the whole price of the property ahead of completion, giving them the peace of mind and the certainty about how much they are going to pay for the property. It is also a great way to take advantage of a positive rate movement. (Please note that forward contracts may require a deposit)

Market order – you could target a rate of exchange, and if that rate is then hit, we could either buy the funds for you automatically or notify you of your permission to buy. With the same principle, we can set up a limit order to protect your transaction in case the rate falls below a certain level. This suits those who have some time on their hands and are optimistic that the rate might improve within their time frame. One of the advantages of the

Bear in mind that the rate can move in any direction, and you can utilise these tools available to you to protect your budget. The sooner you get in contact with a specialist, the more time you must plan your transaction, save money on the rate and remove the risk of currency fluctuations.