Reports are suggesting that UK Chancellor Philip Hammond has decided to ignore EU chief negotiator Michel Barnier and at a meeting today in Berlin he plans to appeal directly to leaders of the states within the EU. Philip Hammond knows that if member states of the EU put pressure on Mr Barnier to allow a trade deal that includes financial services, this can only be good news for the UK and in my opinion the EU. The underlying message that the Chancellor wants to give is that if a deal is not reached between the UK and EU this could have a detrimental impact on the Eurozone economy.
So far this year, Brexit Secretary David Davis made the news when it appeared the European Commission announced that they were surprised the UK didn’t believe the EU would prepare for a no deal with the UK. Reports suggest that Brussels were actually contacting UK companies and warning that they would have to set up in the EU if they wanted to continue to trade within the bloc, in other words move offices and jobs out of the City of London. Mr Davis has tried to intervene however it will be interesting to see the amount of companies that move their head offices abroad. This could give a clear insight to business confidence over the next 12 months.
In regards to GBPEUR exchange rates the pound has actually started well against euro this year and exchange rates are now at a 5 week high, if you ignore a 24 hour period at the beginning of December. For clients that are buying euros short term, for example a property purchase in Europe I would look to take advantage now as I believe the Brexit negotiations in the upcoming months will put further pressure on the pound. However if I was selling euros to buy pounds holding off for a short period I believe will provide opportunity.
The currency company I work enables me to achieve better rates than the high street banks whilst providing clients with economic data which helps them to time their currency transfer. If you are purchasing a property abroad / have sold a property abroad and would like to repatriate your currency, a business owner and needs to buy and sell GBPEUR for stock or just have a one off currency requirement feel free to email me on email@example.com.