The Pound against the Euro has seen some very positive movements already during this month as the issue of Brexit appears to be going well as far as the UK is concerned at the moment.
Britain’s financial services minister John Glen has said that ‘we are increasingly positive on the expectation of reaching a deal’ and UK Brexit Secretary Dominic Raab also suggested only last week that a deal could be done by 21st November and this has provided the Pound with a lot of support vs the Euro recently.
We saw the release of some lower than expected UK Services news yesterday but the fall for Sterling exchange rates vs the Euro was rather brief and we saw the Pound continue to make gains during the afternoon and already this morning.
Later today the Cabinet will be meeting and will be discussing alternatives to the Irish backstop issue which has been a real sticking point for the Brexit talks and I think if the UK can get past this issue then I think the talks will move swiftly along and possibly even conclude this month.
Meanwhile, the Euro has been struggling against a number of different currencies including vs the US Dollar and the Pound owing to the issue between the Italian government and the European Union at the moment.
The current stalemate has been caused by the Italian budget plans which means that they will be spending more than they are allowed by EU rules that they agreed to back in July.
At the moment the EU have allowed Italy just over a week to redraft their budget plans or face a penalty which amounts to 0.2% of their current GDP level, something they are likely to want to avoid. Therefore, this is why we could see Pound Euro rates move towards 1.15 during the course of this week.
If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org