Share prices tumble, Bitcoin rebounds, Brexit or Bremain… you can never predict what’s around the corner which is why buying large amounts of currency can be so tricky. Holiday money matters much less – who cares if your UK meal is 5% more expensive when you pay the kids a visit? But if you are selling a property 5% is suddenly the price of a car!
So, what can you do? In simple terms you can either buy currency in chunks when the rate is good so, even if there is a dip, your average is OK. Or you can place ‘safety net’ – a price you don’t want to go below. Either way, speaking to a currency broker is usually the best plan as they often allocate you a personal contact who can get to know your situation.
So, what’s been happening out there to affect the exchange rate? There are rumours that the European Union might relax its stance on censuring Britain during the Brexit transition period which is good news for the pound. This weekend Theresa May is in Germany where she will give a big speech in Munich on Saturday. A positive meeting with Angela Merkel could give the pound a lift.
Scores on the doors this week (Friday lunchtime)
GBP/EUR 1.127 (steady)
GBP/USD 1.406 (up)
EUR/USD 1.248 (up)
Global share prices had a wobble having hit record highs in late January. Prices around the world took a tumble at the beginning of the month but have since recovered slightly. This volatility spilled into the currency markets and traders have withdrawn from the US dollar into other currencies such as the pound.
Happy Chinese new year!