Are you a Briton, intent on buying a property with Luxury Property Finder Marbella this year?
If so, it’s possible that you may first need to transfer money from the UK to your Spanish bank account, either to make the down payment for your Marbella property or to pay your mortgage.
If this is the case, it may interest you to know what’s happened to the pound to euro interbank exchange rate recently, and what’s likely to affect the rate in the foreseeable future.
This information may be useful for you, to help you determine when to exchange pounds for euros, later this year.
1. Last week, the pound to euro interbank exchange rate reached a 22-month high.
The first piece of information that may be useful to you, if you intend to transfer money from the UK to Spain to buy a Marbella property, is that last week UK sterling hit a 22-month high versus the Eurozone’s common currency.
To be specific, the exchange rate hit 1.1776, its highest since May 14th 2017.
Moreover, so far in 2019, the exchange rate has risen by almost +7 cents since sterling was as low as 1.1087 on January 1st.
As a result, you may now obtain a higher euro total in your Spanish bank account, compared to if you’d exchanged currencies in the preceding 11 weeks.
2. In the near future, the biggest influence on the exchange rate looks likely to be the UK’s continuing Brexit negotiations.
Looking forward, it’s probable that the UK’s Brexit talks with the EU will have the largest effect on the value of sterling versus the euro.
In particular, last week the UK Parliament both voted to forever rule out a ‘No Deal’ Brexit, and to extend the UK’s Article 50 negotiating window.
As a result of those votes, either prime minister Theresa May might return to Brussels, to ask for an extension to the talks, or MPs could choose to support Mrs May’s existing draft deal, to settle Brexit once and for all.
Either way, Brexit might continue to strongly influence the exchange rate in the coming weeks.
3. The strength of the UK and Eurozone economies may also affect the value of the pound versus the euro.
In addition to Brexit, the UK’s and Eurozone’s respective economic performances could also influence the exchange rate, looking forward.
In British economic news, this Tuesday we’ll learn if UK unemployment held at 4.0% in the three months to January, a 4-decade low.
In addition, on Friday, the Bank of England will decide whether to keep UK interest rates at 0.75%, as economists forecast.
Meanwhile, in the Eurozone, financial markets will check for signs that Europe’s economy has slowed further, or if there’s a latent recovery.
In particular, ZEW’s survey of German economic sentiment in March, released on Tuesday, may impact the value of the euro.
With all this in mind then, the pound to euro interbank exchange rate hit a 22-month high last week, while Brexit may further affect the value of sterling versus the euro in future.
We hope that this information is of value, ahead of your money transfer from the UK to Spain, to buy a Marbella property.
By Peter Lavelle at foreign exchange broker Pure FX, a trading name of Foreign Currency Direct Plc https://www.purefx.co.uk
Please note that the exchange rates within this article are interbank rates and are for indicative purposes only, and are not trading levels which Pure FX offer. For live trading levels contact one of our currency brokers on +44 (0) 1494 671800.
This article does not constitute advice to any person on any matter and it is not intended as a recommendation to trade. Pure FX makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to any loss arising from actions taken as a result of acting on this information.