Over the last 30 days the pound has fluctuated against the euro by 5 cents. To put this into monetary terms, a well time €200,000 purchase, would have saved the client £7,500.
The pound is trading against the euro at the lowest levels in 6 months. The reason for the has declined is because Theresa May’s conservative government failed to win a majority at the general election.
Looking ahead Theresa May will continue to try and form a government with the DUP and if this materialises I expect the pound to make back some of the losses we have seen over the last 4 weeks. However Brexit talks are set to start shortly after.
As I have reported in recent articles the divorce settlement has the potential to cause major volatility. Both parties at present seem to disagree on how the UK need to pay before Brexit negotiations begin. Trying to predict how these negotiations will finally pan out is impossible therefore if you are converting GBPEUR in the upcoming months have in the back of your head major swings could occur.
Tomorrow the Bank of England are set to release their latest interest rate decision. Inflation numbers showed an improvement on Tuesday and are now 0.9% above the Bank of England’s 2% target. The Bank of England are not in the position to raise interest rates however I wouldn’t be surprised to see Governor Mark Carney hint that the Bank of England will act if inflation rises further. Therefore I expect the pound to increase in value tomorrow.
If you are looking to save money when converting pounds and euros 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 the options available to you and the process of using the company I work for email@example.com. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.