The Pound to Euro rate climbed earlier this week when a bill was passed in the House of Commons which mandates that the government must request an extension to Article 50. The current deadline is set for the 12th of April but now that the bill has been passed, it must pass through the House of Lords. If it’s accepted by all EU leaders then it’s likely that there will be another extension.
Usually this kind of uncertainty would result in a weakening of the underlying currency, in this case the Pound. Financial markets appear to prefer the uncertainty to the thought of a no-deal Brexit though, which is perhaps the reason for the gains in the Pound’s value. There are currently cross-party discussions between Prime Minister Theresa May and Labour leader Jeremy Corbyn in the hope of coming to an agreement, although yesterday talks apparently didn’t go as well as planned.
Is the Euro going up?
There has been a slight sell-off in the Pound’s value which took place yesterday afternoon when the discussions were halted. However, they will be taking place again today, so those of our readers with a currency requirement involving GBP/EUR should be aware of this.
Early this morning Donald Tusk, the European Council President, has according to reports proposed a flexible extension. This would be for a year but the UK would have the option to leave if a deal is ratified in the meantime. It’s also being reported that UK PM Theresa May has written to the EU asking for another extension until the 30th of June, and GBP/EUR has ticked upward as a result.
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. 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.