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17 April 2007

Two dollar pound results in renewed interest in US property

For the first time in 15 years, Sterling powered above the $2 mark as UK inflation figures exceeded forecasts. With the US property market also experiencing a downturn, Caxton FX is experiencing an unprecedented demand for US currency. Popular holiday destinations, including Florida, are now comparatively cheap.

The UK inflation rate accelerated unexpectedly in March to its highest since records began. This data coupled with expectation of a further interest rate rise pushed the pound above the $2 level for the first time since September 1992. Fifteen years ago, Sterling peaked at $2.0100, a rally that ended with Britain being forced out of the European Union’s Exchange Rate Mechanism.

James Hickman, director of Caxton FX, comments, “We have experienced an influx of both companies and private individuals looking to take out Forward Contracts. A small deposit is paid after which the rate is locked in for a year, giving investors ample to time to source a suitable property. The combination of a $2 pound and a downturn in the US housing market, fuelled by the collapse of the sub-prime lending market, has resulted in bargains for UK investors. However, we would caution investors to do their homework before leaping into the US housing market. Many areas have been over developed and will, therefore, experience low capital growth for the foreseeable future.”

For further information, please contact:
James Hickman, Caxton FX, Tel: 0845 658 2223, E-mail: james.hickman@caxtonfx.com

For press information (not for publication):
Lana Wrightman, Tel: 020 3022 5063, Mobile: 07725 95 1310, E-mail: pr@lanawrightman.com

This press release was distributed by ResponseSource Press Release Wire on behalf of Lana Wrightman in the following categories: Home & Garden, Personal Finance, Business & Finance, Construction & Property, for more information visit http://pressreleasewire.responsesource.com/about.