It has been a terrible start to the week for euro buyers that are holding onto sterling. Exchange rates have plummeted 1.35% from the 1.16s to high 1.14s. To put this into monetary terms a €200,000 purchase is now £2,167 more expensive compared to 24 hours ago!
The reason for the sharp decline in sterling value stems from UK Prime Ministers Theresa May’s televised press conference yesterday. The Prime Minister tried to paint a positive picture by exclaiming she wants the best deal for the UK, however with her next breath she stated ‘were leaving. were coming out, were not going to be a member of the EU any longer’.
She didn’t directly state the UK will be leaving the single market but she certainly eluded to it!
With the Supreme Court decision looming this could be the final nail in the coffin for euro buyers. If the Supreme Court overturn the High Court ruling exchange rates could fall to levels we become accustom to in October (1.10-1.12).
There after we would be in the run up to Mrs May March deadline for ‘Brexit’ therefore another further fall could occur then. For Euro buyers within the next three months, I would recommend trading sooner rather than later. If your sterling is available a spot contract would be your best option, where as if part of your sterling is available you can use a forward contract to secure your currency now and pay later. For further information in regards to contract options feel free to email me on email@example.com
If you are purchasing euros in the 2nd or 3rd quarter its not all doom and gloom. There are three key elections this year in the Netherlands, France and Germany. With far right parties gaining momentum by the day further EU membership referendums are on the cards which in turn could lead to other countries leaving the bloc overtime and therefore buying euros could become cheaper.
As for immediate Euro sellers I would recommend getting in touch to outline your position and I will monitor the market for you and when the time is right be able to offer you exchange rates that will beat your bank.
For further information in regards to currency feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you firstname.lastname@example.org. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **