Over the last 2 years clients holding onto euros to buy pounds have been receiving fantastic exchange rates due to the Brexit decision, something that I have been calling the ‘Brexit discount’. However the pound has been strengthening in recent weeks and time could be running out for clients that are buying pounds with euros.
The commentary coming from the UK is that a Brexit deal is close. Some media stations are reporting that this could be as early as the end of this month, however it looks more likely that the final sign off by the EU will be at the EU summit next month.
Over night a letter has been leaked and the DUP are suggesting that in the event of the Brexit negotiations failing, Theresa May’s plan is to have a backstop within a backstop which would mean a new border in the Irish Sea and Northern Ireland remaining within the customs union. .
Throughout the year the PM has continuously announced she would never split the United Kingdom and the DUP have stated they wouldn’t back the final deal if it means the DUP could remain part of the customs union and Great Britain didn’t.
It’s clear to see there is a lot more to be announced before Theresa May can start her celebrations. A deal with the EU does not mean MPs within the UK are going to agree to the final deal. Nevertheless the pound is strengthening and a deal is looking more likely.
For clients that are selling euros to buy pounds, the Brexit discount is still generating clients an additional £22,500 on a €200,000 transfer. A no deal Brexit I believe would cause the pound to plummet and I still believe that the rates will fall in your favour over the next week or two, however I believe now is the time to make a plan, as I feel that the Brexit discount is going to diminish further next month once the UK and EU agree a deal.
If you are holding onto euros and would like to achieve fantastic rates whilst receiving continuous market updates and support, feel free to email me directly on email@example.com.