To help you get more for your money, Casas Manuel Real Estate Benijofar + La Zenia – (Costa Blanca Property specialists) recommend international payments specialists HiFX to ensure you receive highly competitive, bank beating exchange rates. HiFX can help save you money if you are sending money to and from the UK. A strong pound is certainly helping those looking to buy a property in Spain.
We asked the team at HiFX for their thoughts on the current market situation and the implications of Greece exiting the Eurozone. HiFX Market Commentary as of 23.06.2015
Interbank rate as of 23/06/15 @ 12.43 is 1.405.
How a Grexit could impact GBP/EUR
Greece’s stand-off with the rest of the euro zone over the terms of its bailout has raised the chances that the country could crash out of the single currency – possibly within weeks. But what would the consequences of ‘Grexit’ be for anyone transferring money to and from Europe?
Looking back over the last few years it would appear that history has a tendency to repeat itself. In the past whenever there has been talk of a crisis in the Eurozone, the GBP/EUR exchange rate has tended to strengthen and then fall as talk of impending catastrophe subsequently subsides.
This being the case, if negotiations between Greece and the main Eurozone nations go down to the wire as we expect them to, we expect GBP to rally against the Euro hitting 1.4000 towards 1.4300. Great news for Euro buyers and Brits taking a holiday in Europe, bad news for importers buying from companies in the Eurozone.
To put this into context, this year GBP/EUR has reached a low of 1.2871 and a high of 1.4255 (an 11% swing). In fact, the 1.4255 high in March was the rate’s highest level since November 2007, yet another reason why now is a great time to buy some Euros, before a Euro rally sees the rate plunge back to lower rates.
Greece stays
Any surge in value for the pound from talk of a Grexit could prove short lived, with a relief rally in favour of the Euro pushing the value of the pound back down to levels around 1.3000.
Greece leaves
Although there’s no interest on either side for a Grexit to happen, if it were to occur, again we believe the Euro would again weaken temporarily; however given the underlying recovery occurring in the Eurozone we would again expect the Euro to stabilise pretty quickly thereafter.
Whatever happens in the coming weeks, one thing is certain. GBP/EUR exchange rates will be volatile, and keen rate watchers may well want to grab a bargain while they can.
Due to the volatile nature of the foreign exchange markets, it is impossible to know what will happen in the future, therefore it may be the right time to purchase your currency.
Why use HiFX instead of your bank?
Whatever your international money transfer needs, HiFX makes international money transfers fast, easy and highly secure giving you complete peace of mind.
Benefits include:
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– Expert guidance from dedicated currency specialists and a range of services including the ability to fix and exchange rate today for up to 12 months in to the future so you can protect yourself from adverse currency movements.
– A brand you can trust. HiFX is authorised by the Financial Services Authority under the Payment Services Directive 2009. Registration number 462444.