The rate for changing Pounds into Euros has weakened this week, with the GBP/EUR rate dropping below 1.12. This is a key level as for some time the pair have been trading between 1.12 to 1.1450 so it looks like the support level of 1.12 may about to be broken.
The reason for the uncertainty is due to fears surrounding the proposed Brexit transitional deal and whether the UK and EU negotiators are able to iron out their differences, and move forward allowing the UK a smooth transitional period.
Later this month there will be an EU summit in Brussels on the 22nd and 23rd of the month. The transitional Brexit deal is expected to be agreed by these dates so with no news of the agreement yet I don’t think its unusual to see the Pound lose value as uncertainty mounts.
I think that those following the pair and planning on making a transfer between them should also consider how the Italian election outcome has barely impacted the rates. Many may have expected to see the Euro lose value after the election failed to result in a clear winner, as now there may even need to be a repeat. The Euro has remained resilient though and now it’s trading comfortably in the 1.11’s meaning that the Euro has actually gained value since the election outcome.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on email@example.com and I will endeavour to get back to you as soon as I can.