In my latest Pound/Euro forecast I look at why the EUR has had a tough run of late. The single currency has lost value against the majority of its major currency counterparts.
Yesterday’s sharp decline against GBP seemed to be the culmination of this recent negative trend. The Euro fell close to a 2-year low against the Pound.
EUR sellers have seen their currency positions decline sharply over the past week. However, the key question now is whether they should react and protect themselves against further losses, or hold firm and hope the current support for Sterling will wane.
Of course, it would not be the first time that the Pound has threatened to make an impact above 1.15, only for those clients holding the Pound to ultimately be left disappointed.
With so many false dawns, I can understand that there are strong arguments to suggest that the Pound’s current move is yet to be supported by any real substance. There’s just more “reports” and rumours that Brexit talks may be progressing towards a more positive conclusion.
I remain sceptical as to whether or not this is actually the case. Either way, the fact that we are getting closer to a decision having to be made one way or another is likely to remove some of the uncertainty. This uncertainty has helped support the EUR for this long, by keeping the Pound’s value in check.
Pound to Euro forecast
The current downturn in key Eurozone economies, and the general consensus from both the UK and EU that a no-deal conclusion is the worst outcome for both sides. This leads me to the conclusion that EUR is unlikely to hit its post-Brexit highs again anytime soon.
The current levels will feel disappointing to those who have monitored the market closely over recent months. However, looking at it from a longer-term perspective, the current levels still offer EUR sellers extremely good value, when you consider the history on the pair.
Investors whose risk appetite is larger than mine may be prepared to gamble, and look towards a potential breakdown in Brexit talks as a route back towards 1.15. That said, this is a risky strategy, and leaves any EUR currency exchange positions exposed to further losses.
If you have any upcoming euro currency transfers to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over 19 years’ experience. We help our clients achieve the very best exchange rates on any given market.
Our exchange rates can be accessed very easily over the phone. I can keep you posted with key market developments, ahead of any prospective exchange you need to make.
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