Will Hewitson, Business Development Executive at TorFX explains why the current strength of the Pound can benefit overseas landlords.
Whether you own a property in the UK or have savings in Sterling which you need to transfer overseas, the current strength of the Pound could make it the right time to move that money abroad.
The Pound has had a fairly bullish start to 2015, with a number of factors driving the British currency to multi-year highs against several of its peers.
The Swiss National Bank’s scrapping of its cap with the Euro, the European Central Bank’s more aggressive stimulus stance and the upheaval in Greece have all conspired to drive the Pound Sterling to Euro exchange rate to an over seven-year high of 1.36.
Similarly, both the Pound Sterling to Canadian Dollar (GBP/CAD) and Pound Sterling to Australian Dollar (GBP/AUD) exchange rates moved beyond five-year highs at the beginning of the year as a result of fluctuating commodity prices, a negative global inflation outlook and lower (or at least the threat of lower) interest rates.
Even the GBP/USD exchange rate was able to achieve a monthly high in mid-February as the UK produced impressive employment figures.
All-in-all, if you’re holding funds in Sterling and need to move that money overseas, you may want to start arranging the transfer in the near future.
As we move closer to the May general election, the headwind of political uncertainty could drive the Pound lower.
Landlords with an interest in the GBP/EUR exchange rate may also want to bear in mind the fact that the Euro could be bolstered if the ECB’s planned quantitative easing measures improve the Eurozone’s economic outlook.
Further to this, the GBP/USD exchange rate may begin trending lower as the US Federal Reserve moves closer to hiking interest rates. Industry experts are currently envisaging the central bank increasing borrowing costs in the summer.
If you’ve got funds to move overseas and would like a quote, click through for more information to ensure that you don’t miss out on a favourable exchange rate.
This article was supplied by TorFX, a leading foreign currency broker. If you’ve got an international currency transfer on the horizon, please get in touch and we’ll talk through your options. Tel: +44 (0)1736 335270 | Email: firstname.lastname@example.org