Ideal Time for Britons Purchasing Property Overseas to Sell the Pound Sterling Buy the Euro GBP EUR

July 21, 2015 - Written by John Cameron

STORY LINK Ideal Time for Britons Purchasing Property Overseas to Sell the Pound Sterling Buy the Euro GBP EUR

GBP to EUR Could Return to Best Conversion Rate on BoE Minutes

On Tuesday Chancellor of the Exchequer George Osborne's announcement regarding further spending cuts drove the Pound lower across the board. The Pound Sterling to Euro (GBP/EUR) exchange rate fell from 1.44 to 1.42 over the course of trading but could recover losses if today's BoE meeting minutes are hawkish in tone.

Earlier...

The Pound Sterling (currency:GBP) incurred sustained losses against the other sixteen most actively traded global currencies during yesterday’s session in spite of some encouraging British public sector borrowing figures. Analysts forecast that this the near-term shift out of Sterling denominated assets may prove to be short-lived.

The official figures from the Office of National Statistics revealed that the total level of governmental borrowing last months was £9.4bn – down by almost a billion Pounds from the same month last year.

However, the total borrowing figures for this year so far were even more encouraging for the UK’s new Conservative government. The level of government indebtedness has decreased significantly so far this year in comparison to the same stage of 2014; the current cumulative total for 2015 to £25.1bn – over £6bn lower than it stood in July 2014.

The UK government forecasts that it will completely irradiate the domestic deficit by the year 2019 and that subsequent years will see a surplus of receipts over expenditure of some £10bn on an ongoing basis. The market remains largely in favour of the ‘sound money’ policy which the incumbent British government seems intent on pursuing. In itself, the government’s programme of cuts is not therefore a bad thing for the Pound Sterling.

However, comments from UK Chancellor of the Exchequer George Osborne earlier appeared to have spooked market participants. Osborne told MPs at the House of Commons that he has instructed departments across the government to make projections for future spending plans involving cuts to their respective budgets of up to 40% by the year 2020.

The markets turned against Sterling as a result, sending the Pound Sterling euro exchange rate down into the 1.4100s for the first time since 15th July. Analysts were queuing up to predict that the pair has now reached a near-term peak making it an ideal time for Britons buying properties in the eurozone to purchase their euros.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts Pound Euro Forecasts