After a strong day for GBP exchange rates yesterday, the Pound is trading flat against the Euro whereas its actually lost much of yesterday’s gains already against the major currency pairs.
The reason for the spike yesterday can be attributed to reports out of Ireland that the European Union will offer UK Prime Minister, Theresa May a UK wide customs union which will be a way around the issues surrounding the Northern Ireland border. Some of the shine was taken off of the news though as this arrangement will be treated as a separate treaty. It is progress though after the recent talk of a hard border in the Irish sea whereby Northern Ireland would be treated separately to the rest of the UK, as this is where talks last week stalled.
The GBP/EUR rate is now trading within tight margins and the pair are mostly influenced by Brexit related news, especially now that the UK will be leaving in less than 5-months.
The Euro has got off to bad start today after the ongoing Italian Budget issues remain. Yesterday it emerged that the EU has rejected the Italian governments proposal of 2.4% of GDP for their spending Budget. The Italian government has been at loggerheads with the EU for weeks now regarding this matter, and the EU appears unlikely to budge in their demands. As Italy is the third largest economy within the EU I expect to see this topic influence the GBP/EUR rate until its addresses, and any strains on the Italian and EU relationship could have the scope to impact exchange rates.
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.