The strength and weakness of a currency is invariably intrinsically linked to the strength of their property market and recent positive signs surrounding the UK property market has given sterling a boost in the foreign currency exchange markets.
According to a report on Reuters, the pound rose against both the dollar and the euro on the 9th of June amidst reports that the UK property market has shown tangible signs of stabilising. The housing market in the UK has a considerable bearing on the strength of the British pound and the fact that there are some signs that it is beginning to stabilise has inevitably had some positive ramifications for the strength of the pound in the foreign currency markets. The foreign currency exchange market is notoriously temperamental but with an expert knowledge of the currency exchange markets it is possible to garner a good understanding of the potential factors which will affect the various foreign currencies like the pound, dollar, euro and yen. The recent signs that the UK housing market may be set to regain some footing has come as a welcome relief to the pound in the foreign currency markets and it has managed to claw back some ground against both the dollar and the euro.
Foreign Currency Exchange – Knowing when to strike
For those looking to make large level foreign currency exchange transactions, it is imperative to do one’s research or speak to foreign currency professionals in order to establish exactly when the best time is to strike to secure the most favourable rates in the foreign currency exchange market. According to the report on Reuters, house prices fell at their slowest rate since November 2007 and this had implications for the strength of pound sterling in the foreign currency exchange market. Speaking to Reuters, Paul Robson of RBS stated, “The idea that data are getting better is helping sterling in particular and will help ease fears of more quantitative easing.”
Foreign Currency – A Question of Politics
It’s not just the property market that has an impact on the strength of the pound in the foreign currency exchange market as the recent turmoil surrounding Gordon Brown and the labour government also had a tangible impact on the position of the pound against other foreign currencies. According to the report on Reuters, the pound suffered from the Prime Minister being against the ropes but the fact that he was able to ultimately garner sufficient support saw the pound begin to regain its rise in the foreign currency market.
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