Euro putting up a brave fight
When it comes to foreign property investment, there is a very clear guideline: “Look before you leap”. It’s all a matter of timing; you need to keep a keen eye on the market for the best time to make your move.
If you’ve already found the ideal European property at a price that suits you then with the euro sitting low against the pound at £0.8012, now might just be the ideal time.
A forward contract would let you benefit from today’s rate but pay at a time that suits you better. For just a small deposit you can secure your currency today for use anytime over the next twelve months. It’s the foreign exchange market’s equivalent of “buy now, pay later”, and the ideal way to profit from today’s great rates.
Last week, the euro managed to tick up 0.1 per cent against the pound after dropping to a nine-month low against the dollar at the beginning of the month. However, it seems that investors are recovering from recent growth and inflation numbers coming out of the Eurozone, which were near the already low estimates made by economists.
When Richard Cochinos of G-10 FX strategy at Citigroup Inc. spoke to the Wall Street Journal, he said that investors wouldn’t sell off euros without some sort of clarity from the central banks.
Lennon Sweeting, a dealer at USForex, also said that overall, global economic growth would be slow with many traders and investors waiting to hear whether the European Central Bank will announce Quantitative Easing.