Weekly market headlines:
This week, the pound continues to perform well against both the euro and US dollar, giving people in the UK more value when sending money overseas. If you’re planning to transfer funds for a property purchase, family support, or business needs, this could be a good time to act.
Buying a property in Spain? A £100,000 transfer could now get you €1,00 more than it would have two weeks ago.
Sending money to the US? You could get $2,550 more for the same amount.
*Disclaimer: Currency figures are based on indicative rates as of 27 May 2025 and are for illustrative purposes only. Rates fluctuate and may vary depending on market conditions and the value of your transfer at the time of booking.
Why is this happening?
- The pound to euro exchange rate climbed on Friday afternoon after President Donald Trump threatened the EU with 50% tariffs, although Trump has since delayed the talks by 1 month, so trade talks can continue.
- Germany’s economy is set to shrink for the third year in a row. Germany’s export-focused economy is particularly vulnerable to trade tensions with the US, its biggest trade partner. Many fear Trump’s looming 50% tariffs that will take effect in July if the EU cannot reach a deal would trigger mass job losses in Germany’s already struggling industrial heartlands.
- Food inflation is accelerating as supermarkets pass on the cost of Rachel Reeves’s tax raid. Figures from the British Retail Consortium and Nielsen showed food price inflation rose to 2.8% in May, up from 2.6% in April. Higher inflation decreases the prospect of interest rate cuts and is generally supportive of a stronger pound.
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.
