The pound certainly hasn’t spent the last few months kicking back in a sun lounger with a Mr Whippy. In fact, summer was a bit of a washout for Sterling, with the British currency receiving a pretty good kicking all round.
Speculation that the Bank of England (BoE) will hold off increasing interest rates for the foreseeable future was heightened by a couple of disappointing UK inflation reports, and without the prospect of higher borrowing costs to lend it support (and with Brexit negotiations dragging on) the pound really struggled to hold its own.
Between June and mid-August the GBP/EUR exchange rate tumbled from highs of €1.15 to lows of €1.09, with that 6 cent drop making a significant difference to people sending money to Europe from the UK.
However, in the same period the EUR/GBP exchange rate strengthened from £0.86 to £0.91. If you needed to transfer €20,000 back to the UK from Spain, for example, this movement would have seen you net an extra £1000.
While the euro spent the second quarter of the year trouncing the pound, the currency market is notoriously volatile and the situation could change considerably before 2017 draws to a close.
If you’ve got currency transfers to manage and are worried about the impact of potential market movements, there are a couple of things you can do to make sure you get the most for your money.
- Follow the latest currency news
Exchange rates are always moving, but most people don’t have the time (or the inclination!) to keep half an eye on them day to day. However, leading currency transfer providers like Currencies Direct will send free exchange rate updates straight to your inbox, giving you the information you need to move your money at the right time.
- Avoid transfer fees
If you currently use your bank to transfer money to and from Spain, you’re probably paying unnecessary transfer fees. Providers like Currencies Direct will move your money for free, so you’ll make immediate savings.
- Look into your transfer options
There are loads of different reasons why people need to make currency transfers, and with so many varied requirements it makes sense that there should be a number of different ways of moving money abroad. Currencies Direct offer a range of transfer products that can be tailored to suit your individual needs, from fixing an exchange rate for up to a year ahead of making the transfer to setting up regular overseas payments. Picking the right option for you could help you save time and money, so it pays to find out more about the different services available.