Latest News & Offers

Currency watch: Pound stays above ground

In the last issue, we discussed how the strength of the euro could actually be an opportunity for homeowners in France to benefit from its strong economy...

In the last issue, we discussed how the strength of the euro could actually be an opportunity for homeowners in France to benefit from its strong economy, wealth and purchasing power. For the property investor, a stronger currency equates to a higher return if buying into a weaker currency.

Since then, the pound has held firm and has kept the euro at bay, well above the psychological level of 1.2000. The dollar weakened slightly over the same period, before strengthening to reach six-week highs and levels of 0.6400.

However, with Trichet remaining hawkish on the price stability in the eurozone, the pound may struggle to hold up in an environment where the UK continues to print poor economic numbers for consumer confidence month on month and the housing market continues to slow. The UK has kept rates on hold for now but should there be need, we see there being plenty of room left for manoeuvre.

---