The Sterling to Euro exchange rate has breached the 1.12 level today, recouping much of the losses from last week on Friday. The sell-off last week was triggered by UK Prime Minister, Theresa May when she held firm in her plans for Brexit and suggested that the EU would need to put forward some ideas.
With the UK ‘s and the EU’s negotiators now at loggerheads regarding the Brexit deal, many are expecting to see the Pound fall but at the moment its defying expectations, with the pound climbing against all major currency pairs today. The currency is actually best best performer over the past 24-hours.
The gains today are being attributed to talk of the EU being prepared to make a ‘special case’ regarding the Northern Irish border. This matter has been a key talking point for some time but the topic is surfacing more often now that the UK’s divorce from the EU is closing in. Much of the price movement for the pound is being driven by Brexit related news as well as politics in the UK and in Europe. Despite this, the Pound did gain in value somewhat after comments from the Bank of England this week. Gertjan Vlieghe of the BoE commented that he expects to see 1-2 interest rate hikes from the BoE on an annual basis, which the next hike coming as soon as August 2019.
GBP/EUR has been trading within thin volumes recently, but I’m expecting to see a major move once the Brexit scenario is clarified.
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.