Weekly market headlines:
Sterling (GBP) has come under pressure recently, with the currency falling against both the euro and the US dollar this week. This latest drop comes after Bank of England Governor Andrew Bailey hinted over the weekend that the UK could be nearing its first interest rate cut, potentially as soon as the next monetary policy meeting on 7th August.
While UK inflation remains above the 2% target, job vacancies have fallen to a four-year low, and the economy has now posted two consecutive months of negative GDP growth. All signs point to a potential economic slowdown, which could weigh further on the pound in the weeks ahead.
Looking ahead, the next key data release will be UK inflation figures for June, due out this Wednesday. This could bring additional volatility for GBP exchange rates, especially as markets try to anticipate the Bank of England’s next move.
💡What does this mean if you’re moving money?
If you’re selling property abroad and moving funds back to the UK, this recent weakness in the pound means you could get more pounds for your euros, making it a potentially favourable time to convert.
- For example: If you’re transferring €800,000 from a property sale, based on the pound’s high vs low over the past month, you could gain up to £12,000 more.
*This is an illustrative example only. Exchange rates used are indicative and do not reflect live or actual trading rates.
If you’re planning a transfer this week, whether it’s a property payment, investment, or sending money to family speak to a Lumon currency specialist today. Call +44 (0)204 506 5672 to explore your options.
