Sterling Euro exchange rates are now trading at close to their lowest level to buy Euros with Sterling since November 2013 after the biggest single daily drop since the Euro was created.
Sterling dropped by as much as 10 cents against the single currency on the day when the EU referendum results were announced.
Bank of England governor Mark Carney has suggested that the UK could look at cutting interest rates or going down the line of further Quantitative Easing. With the central bank meeting due to take place next week any change in policy could see further Sterling weakness.
Indeed, Sterling has fallen owing to the rumours that a change in policy could take place so if no change happens next Thursday we could see a small recovery in Pound Sterling.
UK economic data has been rather mixed of late as confirmed with yesterday’s Industrial output figures.
Politically we are now getting closer to finding out who may replace current Prime Minister David Cameron who will be leaving his post in October.
The race is now down to two candidates Teresa May or Andrea Leadsom.
Both politically and economically the UK is facing an uncertain future and until we get some clarity of one or both of these issues I expect to see continued volatility between Sterling and the Euro.
If you need to either buy or sell Euros and want to protect yourself against further movements you may wish to consider buying a forward contract which allows you to secure an exchange rate for the future. This can be particularly useful if you’re already on a tight budget or buying a property in Europe.
If you have a currency transfer to make and want to save money on exchange rates compared to using your exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian firstname.lastname@example.org
I look forward to hearing from you.