After much anticipation and volatility for GBP EUR in recent days UK Prime Minister Theresa May has now delivered her Brexit blueprint for Great Britain. In an interesting twist the pound has rocketed higher against all of the major currencies including the Euro with rates for GBP EUR now sitting at 1.1580 having gained over 2% on the day. The key point for me is that although Theresa May has said that Britain must come out of the single market she has said that Parliament will be offered a final draft at the end of the negotiations for final sign off.
This appears to be the driving force behind todays very strong market movement as it suggests that Parliament will in fact have a greater say in all of this which takes some of the risk out of sterling. As such a good opportunity for buying Euros has appeared.
There is likely to be much discussion in the political arena over the next few days so expect major volatility to continue. However for the moment there is an excellent opportunity for buying Euros after what could have been a very different story. Many commentators were expecting to see considerable sterling weakness if Theresa May signalled a hard Brexit, which she has actually leaned towards.
UK inflation numbers from this morning arrived higher than expected which also helped set the tone for the day with sterling climbing even before the Prime Ministers statement.
The Supreme Court ruling is also expected in the next week and that outcome could still create a huge amount of volatility. Once that verdict has been offered which may arrive on Monday next week then other political forces are likely to come into play and give new direction for the pound. Those clients looking to buy or sell Euros would be wise to get in touch as in these markets anything can happen!
If you would like further information on Euro exchange rates and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com