Do you intend to buy real estate in Torrox this year? If so, before you sit yourself down on the beach, sangria in hand, to enjoy the Spanish sun, it may interest you to know what factors look set to influence the value of the pound versus the euro, looking ahead.
After all, this could be useful information, to help you transfer money from the UK to your Spanish bank account, and increase your euro total. So what’s happened to UK sterling versus the Eurozone’s common currency so far this year, and how might this information help you? Well, let’s take a look.
- Sterling Has Strengthened Versus The Euro So Far This Year.
The first news that might interest you if you intend to transfer money from the UK to Spain is that the interbank exchange rate has risen so far in 2019. To be specific, sterling has risen from 1.1087 on January 1st up to 1.1736 at the time of writing. That’s an increase of +5.85%, or +6.5 cents.
- With The Pound’s Rise, Torrox Property May Become Cheaper For You.
This is because, when the interbank exchange rate rises, you may get a higher euro total in the Spanish bank account, compared to 3 months ago. For instance, let’s say that you intend to transfer £105,000 to Spain, to buy a 2-bedroom flat with beautiful views and a swimming pool.
At the interbank exchange rate on January 1st, this sum would have been worth 116,413.50€. By comparison, at today’s rate, this amount would be worth 123,228€. That’s a notable rise of +6,814.50 in the last 3 months. So this could conceivably make a Torrox property more affordable for you.
- Sterling Has Risen, Because The UK Looks Likely to Pursue A “Soft” Brexit.
Yesterday, MPs in Parliament voted to take control of Brexit talks from Prime Minister Theresa May’s government.
It’s thought that MPs are much more pro-EU than Mrs. May’s government. This makes it likelier that the UK will retain close ties to the EU in future. In turn, this gives confidence to investors, which increases demand for sterling and its value.
- Brexit Looks Set to Further Influence The Exchange Rate, Among Other Factors.
In addition, looking forward, it looks like Brexit will continue to affect the value of sterling versus the euro.
Later this week, the House of Commons will vote on what sort of Brexit it wants. This might include staying in the EU’s Single Market, call a second Brexit referendum, or even revoking Article 50. So this may affect the interbank exchange rate.
Also, the performances of the UK and Eurozone economies could also influence the exchange rate.
So far this week, we’ve learnt that German economic sentiment improved in March. That said, Germany’s manufacturing activity remains at recessionary levels, as demand for Germany’s vehicles in the USA and China slows. So this may affect sterling versus the euro too.
So to sum up, the interbank exchange rate has risen notably so far this year, as the UK looks likelier to pursue a soft Brexit. In turn, as the exchange rate rises, this may make buying Torrox property more affordable for you.
By Peter Lavelle at foreign exchange broker
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Please note that the exchange rates within this article are interbank rates and are for indicative purposes only, and are not trading levels which Pure FX offer. For live trading levels contact me on firstname.lastname@example.org.
This article does not constitute advice to any person on any matter and it is not intended as a recommendation to trade. Pure FX makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to any loss arising from actions taken as a result of acting on this information. https://www.purefx.co.uk