For people that are planning a pound into euro conversion or a euro into pound conversion, now is the time to make a plan as I believe in the upcoming months we are going to experience major volatility for the currency pair. Today UK Prime Minister Theresa May travels to Salzburg for the first of three summits which will take place over the next 2 months. Reports are suggesting that the current summit is going to be fairly informal, however I am actually expecting a positive outcome and for the pound to improve against the euro.
My reasoning is that the Conservative party conference on the 30th September is going to be a tricky event for the PM. At present 50 Conservative MPs plan to vote against the Chequers plan, therefore I actually I expect the EU will get behind it in a bid to bolster the PMs position as its clear to see the UK and EU do want to finalise a deal eventually. However I don’t believe its plain sailing for the pound.
There is still a fair amount that needs to be finalised before a deal can be reached. For example, will the Irish border use technology in a bid to stop a hard border? Unfortunately I don’t expect an agreement until the final hour and therefore I expect investors to sell their sterling positions, quite simply because of the thought of a no deal and therefore I expect the euro to make gains against the pound in the upcoming 8 weeks.
After the extraordinary summit in November, if my predictions come true and a deal is reached, I expect a significant rally for sterling. Therefore for clients buying sterling with euros, I believe you have 8 weeks and once the 8 weeks is over, the fantastic gains you have experienced because of the referendum will start to diminish.
If you are converting pounds into euros or euros into pounds in the upcoming months, feel free to email me with the reason for your transfer (company goods, property purchase) and the timescales you working to and I will respond with the options available to you firstname.lastname@example.org. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **