In today’s Pound vs Euro forecast we’ll look at how the Pound has remained in a fairly tight range against the Euro during the last few days. This is because the markets appear to be adopting a wait and see approach to Brexit.
Yesterday, UK economic data published showed a fall in GDP data, as well as a decrease in both Industrial and Manufacturing output.
Typically, this would lead to the Pound falling across the board including vs the Euro. However, the data did not cause too much of a negative movement. Also, the UK’s Trade Deficit widened to -£12.1bn, but again the Pound remained in a tight range. Sterling traded either side of 1.14 during yesterday afternoon and has started the day off quietly so far.
Should I buy Euros now or wait?
Prime Minister Theresa May is be due to address the House of Commons later today and will update MPs on the current round of Brexit negotiations. Many will be expecting to see some progress on the subject, after the close win for the PM recently concerning the Irish backstop arrangement. However, I cannot see much being changed from the deal previously offered by the European Union.
Theresa May appears confident that a deal can be done. With the next debate due to take place on Thursday, we could be in for a rather volatile next few days ahead for the Pound vs Euro rate, which you may want to bear in mind if you’re buying Euros.
Pound vs Euro predictions: Will Article 50 be extended?
EU Chief Negotiator Michel Barnier has been a bit more positive towards the UK recently. That said, he did also reiterate that it is, “clear from our side we’re not going to reopen the withdrawal agreement, but we will continue our discussions in the coming days”.
These comments can be taken positively for the Pound, as it means that the door still remains open on the continent. However with just less than 7 weeks to go before the deal is due to be done, time is clearly not on anyone’s side. That makes me think that there is a clear case for extending Article 50.
If this takes place, I think this could give the Pound some support. This is because it means a “No Deal” Brexit could be avoided, as well as moving us towards a softer Brexit.
If you would like further information about buying or selling Euros or for a free quote, then contact me directly and I look forward to hearing from you!
Tom Holian firstname.lastname@example.org