Buying a property?
Buying a property – now is a great time to lock in the price of your Euros.
EUR/USD moved 4.3% in May. The difference between buying €250,000 is nearly $12,000
GBP/EUR moved 2.5% in May. The difference between buying €250,000 is nearly £5,617
What has caused this movement?
Germany has entered a recession.
Optimism has grown in the US following stronger US data and the news that the banking crisis and debit ceiling are receding.
FED will hike interest rates again in the summer going against previous expectations.
The UK is looking more resilient. Growth forecasts continue to be revised higher and the IMF no longer experts a UK recession in 2023.
UK headline and core inflation rates both came in above market expectations leading to a change in the Bank of England’s interest rate expectations. The BOE may need to continue hiking.
It is unknown how long this EUR/USD reversal can hold as the long-term trend is not in your favour. This is also a good reminder that data releases can have a dramatic impact on the exchange rate and the cost of your Euros.
If you need to buy Euros now or in the future, get in touch with our friendly currency experts, Spartan FX.
+44(0)203 984 0450 (or email to set up a free Whatsapp call)