Sterling/Euro exchange rate movements
My partner and I plan to buy a ski chalet in 2019. We have the funds ready now but are not going to be able to make the purchase until spring. Is the exchange rate likely to weaken?
The key driver of the GBP/EUR exchange rate is currently Brexit, and with the exit deadline fast approaching we can expect further currency volatility in the months ahead.
Whether the GBP/EUR exchange rate rises or falls over the next few months will depend on how negotiations progress. If it looks like the UK will be leaving the EU with a deal the pound could rally but if a no-deal outcome appears more likely the prospect of yet more uncertainty will probably send sterling lower.
If you would like to get the best return for your currency transfer it is important to stay up-to-date with the latest news, so you might want to consider opening an account with a leading currency provider. It is free to open one and they will send you regular exchange rate updates straight to your inbox.
Their currency experts will also be on hand to talk through your requirements and the different services they offer. For example, if you are concerned the GBP/EUR exchange rate could weaken you may want to look into using a forward contract to fix the exchange rate for up to a year.
While this means you would miss out if the exchange rate suddenly strengthened, you would be protected if it fell and you would know exactly how much your transfer is going to be worth.
You could also set rate alerts so you get instant updates when exchange rates rise or fall to specific levels.
Good luck with your chalet purchase, and remember, if you need to move funds to France to cover the costs of your ski trips a currency provider can help make your money go further with fee-free transfers and excellent exchange rates.
Question answered by Shaun Dash of Currencies Direct. For more information on international money transfers with Currencies Direct see www.currenciesdirect.com/france or call +33 (0)4 22 32 62 40
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