Portugal: Currency Exchange - September 30th
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Sterling finally broke through our range last week. Unfortunately for the majority it was on the downside moving swiftly to 1.16 before closing the week at 1.17. The main reason for this is the growing uncertainty regarding the UK economy. There is fear within the market that the recovery is short lived and the economy will grow a lot less than expected. The weakness of Sterling does cause some concern. Things are not that bright in Europe, or in fact the USA. It just seems that Sterling reacts to bad news more negatively at the moment than the EURO. Against the US Dollar, Sterling looks fairly strong, the problem is the EURO has been strong against the USD, therefore making the STG-EUR cross weak. So where do we go from here?
We still cannot find any evidence to change our general feeling that Sterling will continue to weaken and head towards 1.10. The UK economy is still not out of the woods and it could be a tough winter for the UK. In the short term any move up for the pound could also be short lived. If we see 1.18 again then it has done well but a move near the top of our range this week could be unlikely. Anything near this and it’s a good time to buy EURO, waiting for 1.22 again could prove a false dawn. We may of course be wrong, but this is not the market to be greedy and in the short term at least it may be wise to lower our expectations.
- Anticipated range this week STG/EUR 1.1600 to 1.2000.
- Economic outlook shaky for UK.
- approvals by Banks at low levels.
- STG-USD heads for 1.60.
For more information on currency exchange and property in Portugal, please contact the Portugal property team. This infomation was provided buy our currecny exchange partners Premfx
Published in: Money