The Euro has been starting to show signs of a struggle recently against the Pound with GBPEUR exchange rates now trading at their best level to buy Euros for over 3 months.
EU Brexit Negotiator Michel Barnier has suggested that the deal between the UK and the European Union is getting closer and this has encouraged investors to back the Pound giving it some real support vs the single currency.
Sterling has been trading in the 1.14 levels during the course of this week and we are now just 6 days away from the start of the EU summit which is likely to be crucial in terms of what will happen to Pound Sterling exchange rates in the weeks ahead.
The key topic will be that of Brexit and if a deal gets closer to being concluded this could give the Pound some real support against the Euro. It appears that behind the scenes talks are going well with the Irish border issue and in monetary terms this has moved the Pound Euro exchange rate by as much as €1,800 on a currency transfer of £100,00 which is welcome news for anyone looking to send money to Europe at the moment.
The other issue that has negatively affected the value of the Euro is what is happening in Italy at the moment. Credit ratings agency Moody’s have suggested that they may be ready to downgrade the country as the Italian government have said they will carry on with their public spending and tax plans which goes against the limits set out by the European Union.
The Italian government is set to submit its plans early next week and this could mean that Moody’s could look at downgrading them in the near future which could impact on the value of the Euro.
However, the over-riding issue will be that of the Brexit talks towards the end of next week so make sure you’re well prepared for a volatile end to next week.
A lot of my clients have been opting for a forward contract in recent times to avoid the uncertainty so if you would like to find out more about the options available and would like a free quote then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org