The Pound weakens over new Brexit uncertainty

4 September, 2018

Pratheep Prabaharan

Last week, people looking to buy a property overseas were worried as UK markets were closed on Monday and all other markets took chance to further sell down the Pound against Euro, finding the Pound at 11-month lows against the Euro. The pound strengthened across all major currencies mid-week as Chief EU Negotiator Michel Barnier announced that “The EU is preparing to offer a partnership with Britain such has never been with any third country”.

Since then the pound has weakened once again against most major currencies after weekend reports stated that the Chequers plan on Brexit could be facing troubles ahead. Brexit uncertainty on final agreement is the main driver for the currencies significant movement across all major currencies. Last week we gained a cent on GBPEUR rate due to Mr Barniers announcement and this week we’ve lost a cent. Anyone buying a property overseas need to understand that it’s a volatile and sensitive market and the rates are constantly fluctuating.

Get registered for free with Currency Index to be informed about current political issues and information on the market that could potentially have a dramatic impact on the rates. Being in touch with us could mean avoiding the risk of the rate falling and securing your cost of your overseas property. The advantage of securing your cost early prior to your property purchase is that you will know exactly what it will cost on completion therefore you can plan ahead without any surprises.

It’s worth considering to secure your cost for an overseas property purchase by taking advantage of the current rate in case it falls further. Contact us today to get information and guidance on options that best suit you. A forward option is a great way to ensure you secure a rate ahead of purchase by paying 10% of the full amount of currency you need and the outstanding on completion.
We could see the rate fall further across all major currencies if there is no positive news on Brexit which will increase the cost of your property significantly hence why it’s worth speaking to our experienced CI team today to discuss the best options for you to save you money on your currency transfer.

12.15 – Inflation Report Hearing

1.30am Australian GDP
9.30am ECB Praets Speech
12.30 US Trade Balance

9am – Euro GDP