If you’re planning to sell Euros, it may interest you to know that, after Boris Johnson was elected, we saw the Euro to Pound exchange rate fall. The Pound slightly strengthened, after some confidence returned. However, this was short-lived. Today, the continued threat of a no-deal Brexit pushed the Euro to Pound exchange rate back up.
This was confirmed when Michael Roth, the European Affairs Minister for Germany said that: “We can discuss anything, but the Withdrawal Agreement will not be renegotiated”, “The EU is united on Brexit” and “British Conservatives still seem to have a naïve view that the EU can be blackmailed.”
In addition, the European Commission President Jean-Claude Juncker told the British Prime Minister Boris Johnson, that the deal agreed by Theresa May was “the best and only deal possible”.
Is the Euro going to go up?
The UK Parliament is in recess now until September. So with an increase in risk of a no-deal Brexit, coupled with less time to attempt any alternative solution, the Pound is likely to struggle to gain any value.
Bank of England interest rate decision next week
Next Thursday, the market will look forward to the Bank of England’s interest rate decision and speech by Governor Mark Carney. We might see hints of a UK interest rate cut on the horizon from the Bank of England, to help stimulate the UK economy. This is because other developed countries have or are considering interest rate cuts, amidst a global slowdown.
Typically, an interest rate reduction or prospects of a reduction weakens the currency. With this in mind, we might see the Euro/Pound exchange rate continue to go up.
If you are waiting for the interbank exchange rate to rise, then please let me know and I can keep a close eye on the market for you. Please contact me directly by email here.
If you do not have the funds available now, we can always secure your currency on a forward contract, allowing you to secure an exchange rate today for a future payment. This requires a 10% deposit with the balance being paid on a date of your choice up to one year ahead.