In this look at the Euro rate forecast, I’ll tell you how the British Pound went into the Bank Holiday weekend at its highest levels versus the Euro since 27th March, reaching 1.1770.
Readers of my report last Tuesday will recall that the main factor behind the Pound’s gains were leaked reports that Prime Minister Theresa May and Labour leader Jeremy Corbyn were making significant progress in their cross-party Brexit talks.
This gave hope that a potential deal could be agreed and passed before or shortly after the European elections on 23rd May. Last Friday, reports started to gather pace that the two leading parties were close to concluding a deal on Brexit. This deal would then need to go to the House of Commons, to be voted for or against by MPs.
How another meaningful vote may develop
Already, without a deal even being made official or public, MPs from both sides have stated that they will again reject the deal being proposed. Most MPs are not happy with the Customs Union deal in the offing, which many believe would be a worse deal than what the UK currently has with the EU.
So early signs would be that the next proposed deal is likely to be rejected again, making it Groundhog Day in The House Of Commons. Prime Minister May is also again facing calls for her to resign. However, I believe it is very unlikely that she would step down at this stage, and a vote of no confidence cannot be called until December.
When to buy Euros this week
All this uncertainty has caused the Pound to lose some of the gains made last week, slipping back down to 1.1651. These levels still represent great opportunity for Euro buyers, considering the uncertain times we face with Brexit. The average exchange rate throughout last year was just 1.13, so this is a +3% gain in the value of your Pounds.
It’s a complete guessing game to know which way the tide will turn next for Brexit, with the government having a very lose grip on things. The current levels look appealing for both GBPEUR buyers and sellers at this topsy-turvy time.
If you would like to discuss how these factors could impact an upcoming currency transfer, feel free to contact me directly. You can email me directly here.