Since the announcement of BREXIT the pound has lost an average of 12% against the euro. But the potential exit from the EU is a long and uncertain one. For UK buyers looking into France it is an unsettling time. We have asked the opinion of an expert to understand how this long and winding process is affecting the pound. Adam Jordan is one of the senior dealers at Moneycorp and this is what he told us:
“The current lack of progress with the Brexit negotiations is already having a negative impact on the value of the pound. Not only is there a genuine fear that Britain could leave the EU with no deal, but it raises questions about the current governments strategy. Since Teresa May lost her gamble in calling a snap election reducing her party’s majority in the commons, there have been rumours of dissent within the party and calls for her resignation. Since the Tory party conference in September and subsequent Brexit negotiations the pound has dropped more than 3% against the Euro which reflects the uncertainty and lack of confidence in the leadership of May.
Given the apparent lack of contingency planning for a ‘no deal’ Brexit we can surmise that this would have a very negative impact on the value of the pound, perhaps taking us to and through parity against the Euro. Clearly there is still a significant amount of time for a deal to be struck or contingency planning to take place, which we can hope would limit the damage but it is impossible to offer any specifics at the present time.
Both the EU and UK government are still confident they can reach an agreement despite the lack of any such progress thus far. If they can, then it is reasonable to expect the pound to gain in value. Therefore any indications that they are making positive progress is likely to lift the pounds value.
For individuals looking to trade in the foreseeable future, they are faced with a very uncertain market with a wide range of possible outcomes in terms of the value of pound versus the Euro. Therefore, even more so than usual, it becomes a decision on risk and how much one can afford to gamble based on the individual circumstances. This is where a currency broker can add a great deal of value by either; removing risk by fixing the rate now, for payment at a later date or monitoring the market, to help take a measured gamble, in the hope of achieving a more favourable rate whilst ensuring the cost does not rise beyond a predetermined limit”
Moneycorp has been working with French Entrée for more than 10 years. FrenchEntrée members receive free currency transfers from moneycorp for life, so we can help you every step of the way online or over the phone. From the initial viewing through to purchase and maintaining the property with our Regular Payment Plan, moneycorp can help you make your dream of owning a home in France a reality.
Call Moneycorp on +44 (0)20 3773 6355 for more information or to discuss your currency transfer requirements. Receive free transfers on all your payments. To ask a question about your upcoming property purchase, or for free guidance on the euro – click here.