There was some better news for German Chancellor Angela Merkel over the weekend, with reports suggesting that a potential coalition with the Social Democrat party were back on.
Their previous partnership looked dead in the water following a serious breakdown in talks only last week, with growing fears that Germany may be forced into another general election as no party was going to be able to take power.
Investors reacted to this news by pulling their funds away from the EUR, causing it to weaken against both Sterling and the USD. Despite talks reopening again it seems the markets remain sceptical about how they will progress, with the EUR once again losing some ground against its Sterling counterpart during Monday’s trading.
GBP/EUR rates continue to trade just below, with the EUR finding plenty of support around this level during afternoon trading. Whilst it has slipped from the recent 8 year highs, the current levels still very attractive for those clients looking to sell the single currency.
Whilst the UK economy remains under pressure, reports over the past few days have indicated that progress on Brexit talks has been made. It seems as though UK Prime Minister Theresa May has agreed, at least in principal, to pay a sizeable sum to the EU following our separation. Whilst the official will not be released should they come to an agreement, it has been touted that it could be up to 42bn.
Whilst this may well have a negative knock on effect for the UK economy in subsequent years, it may well prove to be a catalyst for the current talks to progress. This in turn could start to change investors mind-sets and the Pound may benefit as a result.
As such, I would be very tempted to take advantage of the current levels if I had EUR to sell over the coming months, as it may be that the EUR has hit its peak.
If you have an upcoming EUR currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on firstname.lastname@example.org to find out all the options available to you ahead of your currency transfer.