This weeks currency intel…

Banking & Financial Tax & Social charges
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Thank you to @SteveEakins for this!

Currency update, Interest rate change in the UK & President Trump’s Tariffs

If you are moving money across to France from the UK, things have just got a bit more expensive. The Bank of England cut interest rates today, making holding GB pounds less rewarding for investors. As a result, investors have sold the pound, making it less valuable and therefore more expensive to buy Euros.

Saying that, it has only dropped 0.5 cent and still remains nearly 2 cents higher than recently and only 2 cents from the highest levels in 2.5 years.

This all goes to show how fluid rates of exchange are, so dealing with a proactive currency partner can make a sizeable difference.

If you are reading this with USD, the rates have been even more changeable for you. USD / EUR rates are up 7% compared to October, but have fallen 2% in the last 3 weeks. This means that if you are planning a purchase in France, a €2m property is over $200,000 cheaper compared to October, but have also shifted by over $90,000 in just the last 3 weeks.

If you would like a little more information on how these movements might impact your finances or future plans, please feel free to get in touch.
Best wishes,
Steve

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“Fluid” is the word. Pound sterling live always talks up the pound! Here’s their take -

The drop in the Pound confirms markets judge the decision to be a ‘dovish’ one that spells out the need for further interest rate cuts.

However, the Bank also hiked its inflation forecasts and said in the statement, “the medium-term outlook for inflation, a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate.”

The inflation upgrade and commitment to “gradual and careful” rate cuts significantly limit the scope of the Bank to accelerate the cutting cycle to more than a cut per quarter.

This means the selloff in the currency looks to be a knee-jerk move and a recovery is likely over the coming days as markets adjust to the reality that the Bank will cut on three further occasions in 2025.

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