We came across a very interesting article from Foreign exchange writer Peter Lavelle of Pure FX which we thought would be useful to share…
2017 the ideal time to visit Spain, as pound could rise versus euro
Do you intend to visit Ibiza next year, either to rent a villa, hold an event, or even stage your wedding? If so, whether you’d like to sit back and relax by the pool, basking in the Balearic sun, or celebrate the most important day of your life in beautiful surroundings, you’ll want the best exchange rate.
After all, if you exchange currencies while the pound is flying high versus the euro, this gives you extra spending money, to splash out in Ibiza! With this in mind, what’s in store for sterling in 2017 versus the Eurozone’s common currency, and how might this affect you? Well, let’s take a look.
- Sterling could strengthen, because the UK economy is proving resilient to the vote for Brexit.
The pound to euro exchange rate could rise next year, cutting the cost of you visiting Ibiza, because the UK economy is standing tall following the vote for Brexit, back in June. For example, UK GDP is set to expand +2.0% in 2017, according to the IMF, more than the USA, Eurozone or Japan! This could give the pound a welcome boost, giving you more spending money to enjoy in Ibiza.
- The euro may run out of puff, if the European Central Bank extends its stimulus scheme.
The pound could also triumph against the euro this year, because the European Central Bank looks set to extend its giant monetary stimulus scheme. At present, the ECB injects €80bn a month into the Eurozone’s financial system each month, to lift inflation in Europe. Given this, were the ECB to extend its scheme, this would devalue the euro, cutting the cost of visiting Ibiza!
With all this in mind, 2017 looks like a fantastic time to visit Ibiza, as the stronger pound to euro exchange rate could give you more spending money. Make the most of it!
By Peter Lavelle at foreign exchange specialist Pure FX http://www.purefx.co.uk
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