In this Pound vs Euro forecast, we’ll examine how EU leaders met UK Prime Minister Theresa May in Brussels last night, to decide the UK’s future. After a 6 hour debate, the EU offered the UK an extension to the 31st October. The reaction on the currency markets was fairly muted and Pound to Euro mid-market exchange rates traded close to 1.16.
Theresa May is now on a flight back to the UK and will address Parliament later this afternoon. I’m expecting fireworks to go off, with Conservative European sceptics leading the charge.
Since the start of the year, Pound to Euro exchange rates have increased by 6 cents, due to the chances of a ‘no deal’ Brexit diminishing. In my view, yesterday evening just shows that the UK and EU clearly want to strike a deal. This is a good thing for clients buying Euros with Pounds.
However, short term, I expect that Theresa May could face major pressure, and MPs will try to force her resignation. I expect that this uncertainty will keep the Pound range-bound at current levels or potentially see the Pound suffer.
Best time to buy Euros this week
Clients that are taking advantage of current market conditions compared to the beginning of the year are saving themselves £9,400 on €200,000. If you need to purchase Euros short term, taking advantage of current rates should be considered, even though rates for buying Euros have dropped slightly.
In other news, the UK economy has showed signs of being healthier than that of Europe. Yesterday, UK industrial and manufacturing numbers exceeded expectations. Meanwhile, the European Central Bank (ECB) gave a dovish statement after its interest rate decision. This is good news for clients buying Euros.
That said, the Pound has remained range bound. This may be because there could be further uncertainty on the horizon for the UK.
If you are converting Pound to Euros, it’s important to keep up-to-date with developments as they unfold. The currency company I work for has won numerous awards for exchange rates, which enables me to trade GBPEUR / EURGBP at better rates than other brokerages and high street banks.
I would recommend sending an email with a brief description of your requirements and your timescales. This is very important, as the length of time you have will affect your options. I will email you with my strategy and the process of using our company. My email address is email@example.com and my name is Dayle Littlejohn.
If you are already using a brokerage and would like to know if you are receiving the best rates possible, email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands!