Today’s Pound Euro forecast looks at the events that are affecting the GBP/EUR rate.
The Pound has hit its best level to buy Euros in 21 months after it emerged that Brexit may be delayed. We are just 4 weeks to go before the UK is due to leave the European Union and rumours are increasing that this may carry on past the deadline.
This has provided the Pound with some much-needed support against a number of different currencies, in particular vs the Euro. This is great news for anyone looking to send money to Europe at the moment.
There have already been a number of false dawns for Sterling against the Euro in recent months. However, I think potentially this occasion could be the one that Sterling really finds some support from.
Since December, it has become apparent that, in the House of Commons, the current set of MPs are not in favour of passing any Brexit deal. On 12th March, MPs are due to next discuss the next ‘meaningful vote’, so it will be interesting to see what happens with GBP/EUR rates in the next fortnight.
Rumours from Europe are that they are softening towards the UK in terms of the deadline. German Chancellor Angela Merkel has said that “if Britain needs some more time, we won’t refuse but we are striving for an orderly solution.”
Euro rate forecast
In the meantime, whilst the future is brightening for the UK and Sterling, the Euro is now struggling. This is owing to the problems in a number of different economies across the Eurozone.
Germany is experiencing its slowest growth in 6 years. Italy is having increasing problems with their banking system, while the government is potentially looking at changing its recent budget. Also, Spain is just weeks away from a general election. So things are looking rather unstable on the continent and this is leading to the Euro weakening against both the Pound and the US Dollar.
During this month clearly the Pound will be impacted by the ongoing Brexit uncertainty. Hence, whilst rates are at a 21-month high, it may be worth taking advantage of these levels. This is because I fully expect to see a number of dramatic movements before the 29th March.
If you would like a free quote when buying or selling Euros and would like to save money on exchange rates compared to using your own bank, then contact me directly for a free quote. I look forward to hearing from you.
Tom Holian firstname.lastname@example.org