This page contains a Flash digital edition of a book.
ASK THE EXPERTS Ask the expert: Currency


Pound still close to two-year high against the euro


By Alastair Archbold, Senior FX Broker, Foremost Currency (foremostcurrencygroup.co.uk)


T


he GBP/EUR exchange rate has been pulled from pillar to post since the start of the year for a number of diff erent political, social and economic reasons. On one side we have the Great British pound (GBP) and the


other, the euro (EUR). Both these currencies have witnessed quite a turbulent 2014, however the pound has certainly come up trumps as anyone that follows the GBP/EUR exchange rate will have noticed. So it’s still a great time to buy a property in eurozone countries like Spain, Portugal, France and Italy.


With the British economy starting to gain momentum, producing better manufacturing, industrial and unemployment data, there have been many calls for Mark Carney (Governor of the Bank of England) to consider an interest rate hike. T ese rumours, along with other positive data have seen the pound strengthen a staggering 6.3 per cent against the euro since the start of the year. In stark contrast, the big news out of Europe currently is that Mario Draghi, head of the ECB (European Central bank) has again, cut the benchmark interest rate level to 0.05 per cent aſt er coming under pressure to kick start the fl agging eurozone economy. It is hoped that banks will be more inclined to lend money to businesses to increase the fl ow of cash into the European economy. So what does this actually mean for your potential property purchase in Europe? T e GBP/EUR exchange rate moves every second and on average about 2 per cent per month. Key broadcasts like the ECB announcing something like quantitative easing or an interest rate cut have the propensity to move the exchange rates making it either more expensive or cheaper for you to purchase the same amount of euros to buy your dream property. So in actual monetary terms for someone purchasing a property in Europe for €250,000 they would have paid £12,500 less for the same property if they caught the rate at the high over the last six months compared to where rates were in January. With the rate currently so close to a two- year high, it would seem like an excellent opportunity to get your currency arranged or at least discuss your options with an expert to ensure you can take advantage of these gains. §


CASE STUDY


“I saved£3,800 on our €16,000 French home”


Richard Jones from Woking in Surrey has just purchased a holiday home in France and been savvy about using exchange rates (and a currency broker).


“Early in 2014 I decided to take the plunge and purchase a dream holiday home in Lot et Garonne, France. It’s a stunning four-bed house on a hill that caught my attention instantly and the asking price was €160,000. I’m approaching retirement and wanted somewhere to enjoy as a second home, and also something my extended family could take pleasure in. The Foremost Currency Group was recommended to me by several people including the estate agent. I had never dealt with a currency broker before but the fi rst thing that stood out to me was the user-friendly website and account-opening process . It was a very busy time for me and being able to open a trading account online within minutes and upload my documents manually was useful. In a direct comparison to my bank, I saved £3,800 on the exchange rate alone and by purchasing my euros at a favourable time utilising a Forward Contract before the rate started to drop. Savings to one side, the old fashioned-bank manager approach my personal account manager provided was refreshing, with emails being responded to swiftly and he was always easy to contact which was imperative as things can move very quickly. I am continuing to use their online trading service to make smaller monthly transfers for local bills and expenses.”


To fi nd out more about the rates and contract types available from Foremost Currency, contact: Alastair Archbold, Senior Currency Broker +44 (0)1442 892 066, aja@fcgworld.co.uk


aplaceinthesun.com | 145


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156