In today’s Euro predictions, we’ll examine how the GBP/EUR rate has slipped to the bottom of its recent trading range, after it was announced that the extension to Article 50 will be shorter than the markets had generally expected.
Last week, EU Commissioner Donald Tusk had outlined plans for a 1-year extension with the flexibility of leaving earlier, providing a deal was in place. It’s reported that German Chancellor Angela Merkel was comfortable with this, but French President Emmanuel Macron preferred a shorter extension.
The timeline met in the middle and there will be a 6-month extension with the flexible option. However, the shorter timescale has resulted in a slight weakening of the Pound’s value.
Should I wait to buy Euros?
Sterling has dropped across the board, not dramatically but it’s moved towards the bottom end of recent trading levels. GBP/EUR is now trading below 1.16, having seen some support at this level for a few weeks now. The GBP/EUR rate has now dropped by over 2 cents from its annual high, when the rate hit 1.18 for a brief moment.
However, despite this drop the pair remain closer to the annual high than low, after the pair hit 1.09 back in January, when the concerns of a no-deal Brexit were higher. Hopefully, this gives our clients and readers an idea of where they stand overall, should they have an upcoming currency exchange to make.
Brexit talks are now likely to remain the key driver of GBP/EUR values moving forward, and talks between UK Prime Minister May and the leader of the Labour party, Jeremy Corbyn, are likely to continue to hit headlines, as they could result in a breakthrough.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly. I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you buy your currency.
A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me, you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on email@example.com and I will endeavour to get back to you as soon as I can.