Sterling makes gains against the Euro – What will the Euro exchange rate do next? (Daniel Wright)

Sterling exchange rates made gains against most major currencies during trading yesterday following news that the U.K economy had grown by 0.7% in the second quarter of 2015. This is in fact the 10^th consecutive quarter of positive growth for the U.K and really does go to show that the economy chugging along nicely on the road to recovery.

Sterling has slipped a little from the 8 year high that we witnessed just over a week ago now that the issue with Greece has been put to bed. Personally I feel although this has been put to bed for the time being there is an exceedingly high chance that it will come back with a vengeance. The problem is that this may be week, months or even years so do not hold out on the hope that the Euro will weaken dramatically based on this quite yet.

The economy is ‘motoring along’ according to chancellor George Osbourne and Governor of the Bank of England Mark Carney has recently commented on the potential for an interest rate hike towards the latter part of this year/start of next so this may well give Sterling a boost should this start to gather pace.

My personal opinion on the Euro is that we may see a little Euro strength in the short term, making it more expensive to buy as Greece is no longer front page news but then a lot further down the line Sterling may launch a fight back as the Bank of England and interest rate changes become the main focus.

If you are in the process of buying a property overseas then a forward contract may be a sensible option for all or even half of the amount you may need to buy. This is where you can secure a rate for anything up to a year in advance for just a small deposit, therefore eliminating any risk of your overseas property costing more than you bargained for.

If you have Euros to buy or sell either now or in the near future then feel free to email me (Daniel Wright) directly with a brief description of what you are looking to do and I will be more than happy to assist you personally. You can contact me on [email protected] and I look forward to speaking with you.