The outlook for pound to Euro exchange rates is rather uncertain at present with political uncertainty in Britain the main driver on the currency pair. The lack of any headway in the negotiations in weighing down on the market with many believing Theresa May and the Conservatives will form a majority government with the support of the DUP. If you need to make a transfer buying Euros in the future then understanding the market and making some plans in advance is really the best way to navigate the uncertainty that lies ahead.
Overall projections for the pound centre mainly on the outcome of the election and potential for either another election or potentially Labour voting down the Conservative plans. The scope for the pound to rise will be related to the expectation that the UK will in the end sort this mess out but for now the pound seems likely to be languishing in uncertainty.
The Euro is benefiting not just form improvements in the political situation in France but also from political uncertainty in the UK and US. With Marine Le Pen and the National Front failing to spark the right-wing populist charge many had expected the outlook on the European market is much improved. The Euro is actually being seen as a safe haven from political uncertainty elsewhere!
Economically too the Eurozone is outperforming the UK which is posting some worrying data with declines in consumer spending being registered for the UK. Growth too for Q1 saw the Eurozone outpace the UK, further fueling the swing on GBPEUR rates in favour of Euro sellers.
If you have a currency transaction to perform in the future buying or selling the pound or Euro then current affairs could easily see some big swings on the market. The UK election reminds us all we should never take anything for granted so if you have a transfer to make and wish for the latest new, trends and themes please speak to me Jonathan Watson by emailing firstname.lastname@example.org.