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Today's Currency Market Focus Includes:

GBP: Feeling the pressure
EUR: Rally fizzles out
USD: Fed on front foot

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GBP: Feeling the pressure

Brexit remains front and centre for Sterling. While publicly Theresa May is saying Britain is preparing for a hard exit, behind closed doors there seems to be a feeling that both sides are preparing to compromise. Or so we think.

With just over 6 months until Brexit day, pressure is mounting.

Perhaps Theresa May’s biggest obstacle is not the EU but her own party. The Conservative Party holds its annual conference next week and Brexit will be the dominant issue whether the PM likes it or not.

As we’ve seen over the past two years, sentiment towards Brexit can swing from positive to negative suddenly. It’s why investors need to take advantage of moves in their favour.

EUR: Rally fizzles out

The Euro has pressures of its own.

Yesterday the Euro took a tumble as the press reported that the Italian budget meeting would be delayed. This got investors thinking that the new government is heading for a bigger deficit – something that will cause plenty of friction in the EU.

Today we have Eurozone inflation (CPI) and German unemployment. Both are high impact numbers.

USD: Fed on front foot

As expected the Federal Reserve (Fed) raised rates for the third time this year.

But it was the wording that went with the decision that got the Dollar firing with the Fed hinting at a 4th hike in December. Markets seem to think we aren’t far off the last of the hikes though, which may put a handbrake on its upward momentum.

Thanks For Reading, What Next?

To discuss current exchange rates and currency purchasing strategies, please contact your trader today on 01872 487 500.

If you don't yet have an account please request a free quote and we’ll look after you from there.

Have a great day,

Geoff Lambourne - Direct Dial me on 0044 (0)1872 487 470.

Current rates: 

Friday 28th September 2018 at 16:45

£1.00 GBP = 1.1222 EURO

£1.00 GBP = 1.3043 USD

£1.00 GBP = 1.8016 AUD

£1.00 GBP = 1.9652 NZD

£1.00 GBP = 1.6846 CAD

£1.00 GBP = 18.4344 ZAR

Need to Send Money Abroad?

At Clé France, many of our customers have a need for currency exchange.

We are pleased to have partnered with Key Currency to offer our customers favourable exchange rates on international currency transfers.

Key Currency is an award-winning currency exchange specialist, Key Currency Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 753989) and experienced in executing high-volume transactions.

As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.

Save money on your foreign currency transfers

Key Currency can save you money by offering more competitive rates of exchange than retail banks.

Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.

All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.

Download our "Buying A Property in France" Guide PDF document.

Concerned about Brexit? download our "Buyers Guide to Brexit" PDF document.

For everything you need to know about French property visit www.clefrance.co.uk 

Today's Currency Market Focus

GBP: One step forward, one step back
EUR: Solid performer
USD: Fed set to raise rates this week

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GBP: One step forward, one step back

The only certain thing about Brexit is its uncertainty. After a bunch of positive noises last week, the process has taken a big step backward after EU leaders rejected Theresa May’s free-trade plan at their summit in Salzburg saying it “will not work”.

Theresa May has admitted the UK and EU remain a “long way apart” on several issues but has asked the EU to put forward their own ideas.

In terms of the economic calendar, it’s a quiet start to the week for the UK but Brexit news is likely to dominate Sterling action anyway.

EUR: Solid performer

The Euro was a solid performer last week despite a run of soft data. The latter half of last week saw French, German and EU data all miss estimates but it was events elsewhere that drove the Euro’s outperformance.

With the Pound hampered by Brexit and the US Dollar undergoing a correction, the EU has regained favour with investors.

In terms of this week, Mario Draghi, President of the European Central Bank (ECB) is due to give speeches on both Tuesday and Wednesday. His remarks tend to be high-impact events for the Euro.

USD: Fed set to raise rates this week

President Trump may not like it, but the Fed looks set to raise rates on Wednesday of this week – which would be for the 4th time since he was elected.

The odds of a hike stand at over 90%, so it looks baked in already, therefore we are not expecting the announcement to be a big catalyst for the Dollar.

Lately, trade tensions with China have overshadowed any US domestic news. While a Dollar correction was long overdue, some analysts have begun to call the bottom, particularly given the US is tightening while just about everybody else is sitting still.

Thanks For Reading, What Next?

To discuss current exchange rates and currency purchasing strategies, please contact your trader today on 01872 487 500.

If you don't yet have an account please request a free quote and we’ll look after you from there.

Have a great day,

Geoff Lambourne - Direct Dial me on 0044 (0)1872 487 470.

Current rates: 

Monday 24th September 2018 at 10:45

£1.00 GBP = 1.1149 EURO

£1.00 GBP = 1.3124 USD

£1.00 GBP = 1.8044 AUD

£1.00 GBP = 1.9688 NZD

£1.00 GBP = 1.9688 CAD

£1.00 GBP = 18.7408 ZAR

Need to Send Money Abroad?

At Clé France, many of our customers have a need for currency exchange.

We are pleased to have partnered with Key Currency to offer our customers favourable exchange rates on international currency transfers.

Key Currency is an award-winning currency exchange specialist, Key Currency Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 753989) and experienced in executing high-volume transactions.

As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.

Save money on your foreign currency transfers

Key Currency can save you money by offering more competitive rates of exchange than retail banks.

Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.

All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.

Download our "Buying A Property in France" Guide PDF document.

Concerned about Brexit? download our "Buyers Guide to Brexit" PDF document.

For everything you need to know about French property visit www.clefrance.co.uk 

Today's Currency Market Focus

GBP: Sterling climbs on Brexit hopes
EUR: Euro up despite sag in confidence
USD: Dollar loses its lustre 

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GBP: Sterling climbs on Brexit hopes

The Pound has continued its comeback this week.

Yesterday the latest UK retail sales figures were well ahead of expectations – more evidence that the UK economy is perking up.

But the bigger news story was Brexit-based. Cabinet Office Minister David Lidington made the astonishing claim that there is a 85-95% chance of getting a deal done with the EU and could be as early as next month.

Of course, that’s just his opinion, but there seems to be some optimism in the air. That may not last if someone in the government now says the complete opposite – something we’ve become accustomed to. With the October and November EU meetings fast approaching, words will need to turn into actions.

EUR: Euro up despite sag in confidence

The Euro recorded a strong session yesterday, trading up nearly 1% against the US Dollar and even overshadowing the rise in the Pound.

It was despite a rather poor reading on EU Consumer Confidence, which came in resoundingly negative.

However, with subsiding fears of global trade wars, the Euro enjoyed a relief rally as it has been hit harder than most.

USD: Dollar loses its lustre

As pre-warned, President Trump went ahead with tariffs on another $200 billion of Chinese goods. The Chinese duly retaliated with tariffs on around $60 billion of US goods. Simple arithmetic shows Trump was the winner of that skirmish.

The tariff rate imposed by the US was 10%. As traders were fearing it would be set at 25%, the news was taken as a positive for US-China relations and as such there was a sell-off in the Dollar (and other safe-haven currencies).

Is that the end of it? Doubt it. Trump has already warned there would be “phase three” if China retaliated and he also has mid-term elections coming up in November – so may want to show the voters who’s boss.

Thanks For Reading, What Next?

To discuss current exchange rates and currency purchasing strategies, please contact your trader today on 01872 487 500.

If you don't yet have an account please request a free quote and we’ll look after you from there.

Have a great day,

Geoff Lambourne - Direct Dial me on 0044 (0)1872 487 470.

Current rates: 

Friday 21st September 2018 at 13:00

£1.00 GBP = 1.1207 EURO

£1.00 GBP = 1.3181 USD

£1.00 GBP = 1.8094 AUD

£1.00 GBP = 1.9732 NZD

£1.00 GBP = 1.7031 CAD

£1.00 GBP = 18.9494 ZAR

Need to Send Money Abroad?

At Clé France, many of our customers have a need for currency exchange.

We are pleased to have partnered with Key Currency to offer our customers favourable exchange rates on international currency transfers.

Key Currency is an award-winning currency exchange specialist, Key Currency Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 753989) and experienced in executing high-volume transactions.

As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.

Save money on your foreign currency transfers

Key Currency can save you money by offering more competitive rates of exchange than retail banks.

Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.

All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.

Download our "Buying A Property in France" Guide PDF document.

Concerned about Brexit? download our "Buyers Guide to Brexit" PDF document.

For everything you need to know about French property visit www.clefrance.co.uk 

Question: Dear Sir/Madam, I will be very grateful if you can explain to me the possibility of buying properties which need full repair, repair them and put them on the market for sale again, I spend a long time going through your website and there are many properties but the problem is with the right area and properties in good condition stay on the market for a long time and not selling. Could you please direct me and your advice are appreciated.

Thank you. Best Regards, Dave G.

Answer: Hi Dave, sorry for the delay in replying, I have just returned from holiday, now a long distant memory and back to work!

What you suggest is certainly possible and I know of many people that have done this and still do it. In terms of re-selling the lower value properties tend to move quicker so a typical rural 2 bed cottage with garden for resale value around 50K or so is the best target renovation project and depending on how much work you want to do you can pick up barns for 5K sometimes or ‘projects’ from anything around 10K to 30K+ etc.

The capital gains tax you will have to pay to ‘turn-over’ the projects quickly is based on the profit you make on the sale of course unless you live in each project full time during the renovations and claim it as your principal residence and therefore not subject to capital gains. Or if you really want to make a good living then you could register as a business with the activity 'Marchand de Biens’ which is basically a property developer.

I worked as a 'Maitre d’Oeuvre’ in the Pays de la Loire region of France for 12 years from 2001, basically a Project Manager renovating properties for clients and I did 5 of my own properties during that time, so it is possible to do and rewarding however I would offer a few words of caution!

Buying a run down barn or house, renovating it over time and re-selling it is not as profitable as it is in the UK where in general property prices are higher and the demand is greater. In France in my experience the margin of profit is very small in terms of the amount you tend to spend on materials and specialist artisans such as Plumbers and Electricians perhaps added to the capital outlay for the building itself tends to add up to just a little less than the final value of the property.

Going for grander sized projects would give more scope for profit but the downside is that they take longer to sell.

So in summery I know people who have made a living doing what you are suggesting but I don’t know http any of them have become very rich from the activity but if earning a living doing what you like doing is for you then the lifestyle in rural France and the experience of renovating old properties is not a bad life to lead.

Hope this helps and stay in touch, Many thanks David.

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Hi Sharon,

We would like to Thank you and your fabulous team for making the whole experience a total pleasure!
Your agent helped us from start to finish she even went the extra mile in the day of signing by helping us to find the water meter and setting up our new contract.

We found you all to be very helpful and would thoroughly recommend anyone wishing to purchase a property in France to use your services.

From a very happy Mr and Mrs Carter.

Psst - Have you seen our new "Meet the Team" page?

Buying a Chateau, Manor House, Farmhouse, Cottage, Holiday Home, Lake or just a Plot of land in France is easy with Cle France, You can do the same, it is easy for you because WE guide YOU through the French Property Buying Process from the very start to completion and beyond!

And as several of our clients say "Follow your heart and make the move"!

For everything you need to know about French property visit www.clefrance.co.uk