Well, it would appear that today’s interest rate increase to 0.75% has helped to lift the Pound slightly against the Euro - although it is still dawdling along below 1.13.
Reading the reports on poundsterlinglive.com much of what may happen to the exchange rate will depend on the Brexit deal and they feel that the interest rate rise will not have a lasting effect. They speculate that, should the UK obtain a satisfactory deal with the EU, then the rate could climb to close to 1.20 next year.
What a dilemma!! We are planning our house purchase for October this year - possibly just about the worst time as it stands for the exchange rate. As I am cashing in a large proportion of my SIPP pension to fund this, the timing is going to be important to minimize losses.
I can feel a frank discussion coming on with my in-laws about timing this purchase. Pulling my SIPP early will cost me both now and in the future. However, delaying the purchase in the hope that the exchange rate improves may be a fallacy as the UK may crash out with no deal and the rate could be worse than parity.