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Spanish Property & Foreign Exchange Rate report for 2008 & 2009
By Spanish Hot Properties
Dated: Jul 22, 2009
Important Levels/Ranges GBP/€ During 2008. January 2008 - March 2008 GBP/€ rate range 1.3600 –
1.3000 March 2008 – Nov 1.3000 – 1.2200. November 2008 – Year end GBP/€ rate range of 1.27 – 1.02.
Susana Suspenda the legendry marketing and exchange rate analyst of Spanish Hot Properties analyses the
currency trends of the past 18 months and what the future holds for the Sterling Euro exchange rate.
The British Pound has had to endure an absolutely torrid time through the whole of 2008. Having opened
the year at €1.3600 to the Pound we had to wait until March 2008 for the rate to break through the 1.3000
level. Once through we remained within a trading range of high 1.2900’s to lows of 1.2200 right up until
November 2008. From the month of November onwards we saw a far more aggressive movement in the
decline of the Pound. Having broken through the 1.2000 level the pound plunged toward parity with this
move stopping just shy at 1.0200 on the 30th Dec 2008.
The Pound recorded an overall decline of 23% against the € during 2008.
Having started 2008 with the disruptions to both global and credit markets well documented it was
expected that UK output growth would moderate during the course of the year. Consumer spending began
to fall and the climate for investment deteriorated. The market for securitised debt remained virtually closed
by now. The Bank of England’s Monetary Policy Committee’s role was to ensure that inflation was kept in
check which meant that UK interest rates were not reduced in line with those in the United States.
Against this background, UK banks tightened the terms offered on new loans to households and businesses
which further compounded the declines in the UK housing market prices. With new mortgage lending
falling to the lowest levels since records began the housing market in the UK has all but come to a halt.
Overall house price