In this Euro Pound forecast, I’ll tell you how today the Pound to Euro interbank exchange rate is experiencing weakness, amidst ongoing uncertainty around the Brexit negotiations. Tensions are rising high in the political arena, with Prime Minister Boris Johnson accusing opposition lawmakers of ‘surrender’ to the European Union.
There are growing concerns as well that the UK is not prepared for a no-deal Brexit. According to the government’s spending watchdog, medicine suppliers are less prepared for a no-deal Brexit than they were on the first deadline to leave the EU. Also, two of the UK’s supermarkets have cautioned that there could be disruptions to the supply of food.
On the back of this news, we have seen the Euro to Pound interbank exchange rate range between a low of 0.8845 and a high of 0.8866 today.
Will the Euro to Pound exchange rate continue to edge higher?
Michael Saunders, one of the Bank of England policymakers, today indicated that interest rates in the UK may need to be cut in the coming months, even if a no-deal Brexit is averted.
With a slowdown in the UK economy, a cut in interest rates would stimulate the UK economy by encouraging companies and households to borrow and spend more, as debt is made cheaper. However, a cut in interest rates would typically weaken the value of the Pound.
With this in mind, amidst the ongoing Brexit risk and possibility of lower interest rates, we might see the EUR/GBP exchange rate continue to rise.
If you are waiting for the EUR/GBP interbank exchange rate to rise further, then please let me know and I can keep a close eye on the market for you and alert you when it moves accordingly. 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.