If you’re looking for a Euro rate prediction, you may find it useful to know that the Pound to Euro exchange rate remains tested, with rates sitting just over 1.12.
With just two MPs, Boris Johnson and Jeremy Hunt, in the Conservative race to become Prime Minister, the markets must now wait for the Conservative membership to vote in the coming weeks. The decision will carry far-reaching implications for the country and also the way forward for Brexit, as both candidates have different ideas on how to deliver Brexit.
Boris Johnson has indicated that he will ensure Britain has left the EU by the current deadline of October 31st, and will also bring ‘no deal’ to the table as a negotiating tool. The prospect of ‘no deal’ is keeping the Pound on a weaker footing and this seems unlikely to change any time soon.
Pound Euro exchange rate forecast
If anything, the Pound may have further to fall if ‘no deal’ becomes a credible outcome. Parliament is running out of ways to stop a ‘no deal’ Brexit. However, any further delays could force the next Prime Minister to call a general election.
Such a move could see even more uncertainty for GBP vs EUR exchange rates and the Pound would likely fall. If the political make up was to change with more Liberal Democrat MPs or, more likely, a sudden influx of Brexit Party MPs, then this could have far-reaching implications for the Brexit process.
Ironically, the choices made to insist that Parliament had the final say on Brexit could ultimately see a bigger move to an even harder Brexit. This could see those forecasts from the Bank of England of parity for GBP to EUR come true.
The Bank of England held interest rates yesterday as widely expected, although its Q2 2019 growth forecasts have been cut down from 0.2% to 0%. Whilst the Bank of England still expects to raise interest rates, the uncertain global outlook is likely to force the central bank to hold back from any decisions.
For assistance in making transfers either buying or selling Euros, and to discuss these issues to help with the timing of an exchange, then please contact me, James Lovick, at firstname.lastname@example.org.