How the Pound performed in February
February was a relatively flat month for the Pound, with exchange rates falling slightly for those of you buying in the Eurozone or USA. Generally, sterling remained strong and stable for those of you buying overseas, with the figures for the year to date showing only a small net movement.
Rate movements
| Currency Pair | February | 2026 to date |
|---|---|---|
| GBP-EUR | -1.1% | -0.5% |
| GBP-USD | -1.6% | -0.0% |
In real terms, a typical €200,000 purchase would have cost around £800 more at the end of February, than at the turn of the year – but still significantly cheaper than last November when the Pound was at a recent low.
Global headlines and currency volatility
At the time of writing, headlines of course are turning to the escalating conflict in the Middle East. Financial markets are notoriously volatile during times such as these, and while we all hope for a rapid end to hostilities, the Pound could be vulnerable to a drop should the UK become more involved. Should oil supplies be restricted, the US Dollar would likely be impacted, and that would have knock on effects on other currencies, which would be nearly impossible to predict.
What to watch in March
Back in the world of economics, the Bank of England meet on March 19th to set the UK’s benchmark interest rate. After February’s split vote, it would be no big surprise if base rates were cut in March – which can lead to a weaker Pound, as investors move money elsewhere for higher returns. That being said, when interest rate cuts are ‘priced in’ to exchange rates in advance, there is sometimes no effect at all when the announcement comes.
How to protect your budget
If you are looking at buying overseas in the coming weeks and months, do contact A Place in the Sun Currency before you travel, to help make your money go further. As well as news updates and market insight, you can save up to £4,200* on a typical property purchase, due to the commercial exchange rates on offer to all clients. And if you are selling and repatriating funds to the UK, the service can prove even more useful – contact the team directly for more information.
A Place in the Sun Currency is regulated by the FCA, and the Bank of Spain – and is a service designed specifically to help property buyers, sellers and owners move their money safely and efficiently across borders.
