With sterling to euro exchanges proving to be one of the more difficult currency pairs to predict in 2017 this week offers up some opportunity for fresh direction. The pound has had a bad start to the year slipping back to levels not seen since October against the Euro. This is of course all down to the Brexit news, mainly the expectation Theresa May will pull the UK out of the Single Market. The Euro is also faring well with improved economic data and a settling of some outstanding political issues for now.
I expect that GBPEUR could easily slip to 1.10 on Theresa May’s speech which is today at 11.45 UK time. Otherwise there is a likelihood that the market will get better for Euro buyers in the future as political uncertainty raises its head in the Eurozone. We got a taste of this in December when the rates were much worse for Euro sellers as political uncertainty rocked the Eurozone with the Italian Referendum. There is still a chance that the Italians will call a snap election but for now the problems have settled and attention remains on the UK. In the coming months we do have the Dutch election, the French election and then later this year the German election.
Expectations are for the market to favour Euro sellers and there is scope it could get very expensive in the coming weeks as we try to understand the complexities of the Brexit. If you have a transfer to buy Euros in the future then whilst rates could improve longer term I would be making some plans urgently, particulalry if the transfer is in the next two months. If you are selling Euros for pounds we are at multi year highs which will not be easily broken in the short term.
For more information on the best strategy to buy or sell Euros at the moment please speak to me Jonathan by emailing firstname.lastname@example.org.
Thank you for reading this post and I look forward to hearing from you soon.