GBP/EUR – At present there seems to be little hope for Sterling rising in value against the majority of major currencies. The main anchor for the pound is the fact that a Brexit “no deal” scenario is still on the cards, while this is still a possibility I think there is little hope for Sterling to gain significant ground.
There could however be the chance of Euro weakness. If the Turkey situation escalates this could well hit the Euro. There are several large European Banks who are owed substantial sums of money from loans to Turkish business. BBVA, BNP Paribas and Unicredit are among those owed.
The problem is due to the rapid fall in Turkish Lira and the ongoing strengthening of the US Dollar. The loans were predominantly taken out in US Dollar and now due to the currency differential the debts are now substantially more expensive.
Inflation is also rising rapidly and President Ergdogan has been extremely stubborn in regards to trying to counter the effects through a change in interest rates. A central bank is meant to act as a separate entity to the government, but with the appointment of Erdogan’s protege and son-in-law in charge of Turkey’s economy there seems little chance of any counter measures against inflation.
Qatar has just provided $15bn in financial aid which has eased the problem, but if the International Monetary Funds (IMF) needs to get involved this could send shock waves through the market and the Euro could lose value.
If you are sitting on Euros at present and are moving back to Sterling I would take advantage of current levels. I think there is potential for further gains for the Euro due to the lack of clarity surrounding Brexit, but looking at risk verses reward I would be taking advantage of current levels, we sit at a yearly high for Euro sellers.
If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.
If you would like my assistance I can be contacted at firstname.lastname@example.org. Thank you for reading. Daniel Johnson