European Central Bank (ECB) Vice President Vitor Constancio has spoken out on the current state of the Eurozone economy, highlighting its resilience to recent issues and stating that growth continues to improve in line with forecasts. It is expected that Inflation will rapidly exceed 1% by Spring of next year, so long as Mario Draghi continues to maintain his monetary policy support. This is still hovering way below the target of 2%, something which is not expected to return until late 2018-2019.
Markets are anticipating the ECB to extend the current asset purchasing programme in December, potentially by three months, as the current programme should be drawing to a close by March. This could be taken as a positive or a negative – a positive that the ECB continue to act on improving the economy, but a negative that the economy still requires action.
Economic data for the UK and Euro are relatively light this week, with the main focus being on the publication of the ZEW (Zentrum für Europäische Wirtschaftsforschung) Economic Sentiment Survey released this morning at 10am. This measures the amount of investors who feel optimistic versus the number of analysts who feel pessimistic about the economy, and is expected to show an improvement in October. Tomorrow, Industrial Production figures will be published for August and are also expected to show signs of positivity.
EUR/GBP rates are still at the best levels seen in over 5 years, and based on this morning’s exchange rate of 1.1063 a €150,000 transfer into Pounds has made an additional £21,500 compared to before the referendum. Any clients selling properties to return to the UK could reduce their prices to encourage new buyers, whilst still enjoying the gains made since 23rd June. For example, taking the difference in exchange rates before the Referendum compared to now, on a €150,000 property has meant that a reduction in price of €20,000 would still mean a higher Sterling return. Please feel free to talk to us in more detail about how we can help you plan for a property purchase or sale.
Get in touch with our brokers today on 01494 725 353 if you have an upcoming currency transfer youd like to discuss.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.