How the Pound performed in November
Looking back at November, it could easily have been a volatile month for the currency markets. With the much-anticipated Budget, and the UK’s finances under the spotlight, there was certainly a worry that the Pound might suffer when Rachel Reeves announced her tax and spend changes, and updated financial projections.
However, buyers of overseas property needn’t have worried in the end – the Budget didn’t upset financial markets, and in fact sent the Pound slightly higher against both the Euro and US Dollar, sterling finishing November at its strongest level for the whole month.
In fact, exchange rates moved very little at all throughout the month.
November 2025
GBP to EUR: +0.55%
GBP to USD: +0.7%
What this means for overseas buyers and sellers
The change over the month was not significant, but still enough to make a €200,000 property nearly £1,000 cheaper at the end of the month, compared to the beginning.
However, looking at the wider picture, rates for buying Euros remained relatively low, compared to recent history. In fact, in the middle of the month (and at the height of Budget speculation), the Pound reached its lowest point against the Euro since April 2023, a two and a half year low. It’s safe to say that the UK’s appeal to investors is still subdued, and how the economy grows (or not) in the coming months may well be key to the Pound’s future performance.
Of course, if you are selling overseas property and repatriating funds to the UK, the lower level for the Pound has been welcomed. Selling a €200,000 property in November would have resulted in some £9,500 more in your UK bank, than at the same time a year earlier.
What to watch in December
This month, we have a fair amount of economic news out before the Christmas break. The most important is arguably the Bank of England’s next interest rate decision, on December 18th. If the Bank were to cut rates, it would be likely to send the Pound lower, because lower interest rates typically reduce the appeal of a currency – but much will also depend on how the nine-strong committee’s votes are split.
Before the Bank of England decision, figures in the UK such as GDP (12/12), unemployment (16/12) and inflation (17/12), are all important in their own right. They will also all likely affect the Bank of England’s thinking, along with a broader economic sentiment post-Budget.
How to protect your budget this winter
As always, it’s impossible to predict what will happen to exchange rates, but having a personal contact at a specialist like A Place in the Sun Currency will enable you to stay on top of any developments. If you have a large transaction coming up, for a property purchase for example, you can also fix and guarantee your exchange rate ahead of the Christmas break, and focus on the turkey instead of exchange rates.
