Why has the Pound reached an 18-month high against the Euro?
Continuing the theme of recent weeks, the Pound has reached its highest level against the Euro for 18 months. The move has been driven by expectations that the Bank of England will raise interest rates at its meeting tomorrow, and higher interest rates usually mean a stronger currency.
October certainly followed that pattern. We saw exchange rates for overseas property buyers improve by nearly 3% throughout the month, meaning a typical €200,000 property is now around £5,000 cheaper than a month ago. In fact, compared to a year ago, the difference is over £10,000 for an identically priced property.
October also saw further unrest in France, which looked like spreading further afield and may well have kept the Euro cheaper amid investor concerns. The European Central Bank looks unlikely to raise its interest rate, making the Bank of England’s anticipated action tomorrow more pronounced.
Of course, should UK interest rates not be raised, we could see exchange rates fall back rapidly. With that in mind, A Place in the Sun Currency offers fixed exchange rates in advance.
This keeps your budget in Pounds, locking in the current high rate and meaning you’re not at the mercy of exchange rate movements. It’s a popular way to reduce currency risk when buying overseas.
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Why has the US Dollar changed against the Pound?
Until recently, we had seen the US Dollar (and currencies pegged to it, such as the UAE Dirham) gaining in value.
October was a relatively flat month for the Dollar against the Pound, with a small improvement for those of you looking to buy property in the States. The overnight midterm election results have improved rates a little further.
With Donald Trump now less able to legislate for the remainder of his term, will we see another US government deadlock between Republicans and Democrats? If so, we might expect to see further US Dollar weakness.
What could affect exchange rates in November?
With November being the last full working month until markets start to wind down for Christmas, it’s worth keeping an eye on developments.
After tomorrow’s Bank of England announcement, we have the usual raft of monthly economic data coming out. The Bank’s press conference tomorrow may set the tone for the end of the year.
You can check the latest news at any time with A Place in the Sun Currency’s jargon-free currency news section, or call the friendly team to find out what’s happening with rates, free on 0800 622 6522.
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October exchange rate summary
| Currency pair | Change in October | Change in 2026 |
|---|---|---|
| GBP-EUR | +2.7% | +4.6% |
| GBP-USD | +1.0% | -0.6% |
