In today’s Sterling Euro forecast, we’ll see how the Pound has fallen mid-week against most currencies. This is because cross-party Brexit talks between the government and Labour are believed to be close to collapsing.
Pound to Euro exchange rates have fluctuated between highs of 1.1681 and lows of 1.1607 at the time of writing.
The expectation is for the talks to fail and the government to head back to square one. This is a vast change from my report last week, when reports suggested that talks were progressing and we could see a compromise and way forward with Brexit.
Should I buy Euros now or wait?
The Pound made gains against the Euro and US Dollar late last week, when it looked like the government and Labour were close to agreeing a cross-party deal. However, now that this is looking more unlikely, the Pound has dipped off against the Euro and US Dollar.
If the cross-party talks produce a compromise, then Parliament will need to vote and approve the new deal. If the deal is approved, the UK would leave in the summer, starting the transition period. The Pound will likely strengthen on the back of more certainty about the direction of Brexit. If Parliament rejects the deal, there will be further votes on alternative arrangements, similar to what we have seen previously.
If cross-party talks fail, we will see Parliament voting once more on alternative arrangements. Alternative arrangements will likely consist of an option for a soft Brexit, second referendum vote, or Prime Minister Theresa May could even call an election. If Theresa May calls an election, there will be further political uncertainty and I would expect the Pound to suffer against most currencies.
This current political situation is unprecedented, so trying to predict the likely Brexit course is near impossible. Get in contact and speak with an expert to see how you can mitigate the risk of losing money on your future currency transfers. Feel free to contact me directly here.