The Pound has once again come under pressure vs the Euro after Prime Minister Theresa May suggested that the Brexit talks are 95% complete.
However, at the moment the real sticking point is the Irish border and until that is resolved I cannot see the Pound making any substantial gains. The European Union has not yet offered any alternatives and this is one of the major reasons for Sterling’s lack of support causing GBPEUR exchange rates to struggle.
The current suggestion offered by Theresa May is that the UK will remain in a customs union with Northern Ireland included but the EU have said they will only allow this to happen during the transitional period. However, this plan does not offer a permanent solution.
If both parties cannot agree on the terms of the border issue this will continue to pile pressure on Sterling exchange rates so if you’re planning to send money to Europe it may be worth getting this done in the near future.
On Monday Chancellor Philip Hammond will announce the latest Budget which could be a tricky one to deliver. Hammond will need to keep Tory voters and MPs happy with his plans as the party does not have a majority in parliament so if we do see any surprises this could cause movement on GBPEUR exchange rates.
On Tuesday we could see even further movement with the latest Eurozone GDP data for the third quarter. This will be the first estimate of the previous quarter with expectation for growth of 2.1% so anything different could cause a lot of volatility especially if the continent shows signs of a slowdown caused by the uncertainty of Brexit.
If you would like further information as to what is happening to GBPEUR exchange rates and would like a free quote then send me an email with a description of your requirement and I look forward to hearing from you.
Tom Holian email@example.com