Overseas property investors have been paying particular attention to the latest development in the currency markets. The smallest fluctuations in the money markets can make a huge difference to the price of a property abroad and requires careful planning with a specialist broker. Moneycorp  offer investors a daily brief to help them keep up to date with the foreign exchange markets.
 
  
Moneycorp report that US real estate is looking extremely attractive to UK buyers where Sterling has been outshining the UD Dollar. Two positive house price reports and first quarter UK economic growth at twice the speed of the States were not enough to allay fears that investors had taken Sterling as far as they were able on the back of the currently available information. Sterling had a busy week trying to maintain its position above $2.00. On Wednesday it set off to have another look at $2.01 but could not get within 30 ticks. On Thursday it half-heartedly tried again before tumbling to $1.99. It dipped below that level early on Friday morning before pulling itself briefly back up above $2.00. Another fall followed and this Monday morning it was back down at $1.99.

 
The US economy found it difficult to deliver any superior data last week but the Dollar was not unduly worried. Existing (as opposed to new) home sales took their biggest monthly turnover hit for 18 years. First quarter economic growth came in at an annualised 1.3 per cent, a half percentage point slower than the economists' already dreary forecast. Durable goods orders were strong enough at the headline level but the bulk of the improvement was down to a healthy order book at Boeing. So it was not the economic data that kept the Dollar afloat, it was a nagging worry that the currency had been sold beyond the levels justified by weak fundamentals. On Thursday and again on Friday the Dollar rallied simply because it could be pushed no lower.


Last week's consolidation was not entirely a surprise after two weeks' almost unbroken bull run. Sterling could have further gains in store but its immediate challenge is to offer a new incentive for investors.

So what to do?
If all goes according to plan the Pound will recover and build upon its position above $2. Buyers of the Dollar should nevertheless exercise caution by covering some of their requirement now, while Sterling is close to its highest level for a generation.
 
Take the uncertainty away with Currency Specialist
You do not have to be at the mercy of the money markets or the banks. Find you the best exchange rates available to make your currency transaction as smooth as possible - and save you both time and money.
 

Are you looking to buy property in USA ? Florida , Cape Coral , Detroit , Buffalo , New York

Are you looking to rent property in USA ? Austin , Kissimmee , New Orleans , Park City , Breckenridge

Residential Property for sale in Florida , House for sale in Florida , Villa for sale in Florida , Land for sale in Florida , Accessible property for sale in Florida , Investment property for sale in Florida

Author

  1. avatar
    Carol McDonald