If you’re looking at buying euros, is this a good time? If so, it may interest you to know that, with just over 7 weeks to go before the UK is due to leave the European Union, we are closing in on the final stages of the Brexit talks.
Currently, Prime Minister Theresa May is in Northern Ireland to try and break the stalemate between the UK and the European Union over the current agreement concerning the Irish backstop.
Euro rate prediction: Euro may weaken if Article 50 extended
One thing that will be making headlines in the near future will be that of the Malthouse compromise. This is aimed at rewording the Irish backstop agreement as well as allowing for more time to conclude the negotiations. This would mean extending Article 50 after 29th March.
The proposal is to extend the transitional period until 2021. This would in theory allow enough time for both sides to reach a conclusion. This is instead of trying to race through something which may not work in the next seven weeks. If Article 50 is extended, this may be a good time to buy Euros.
When should I buy Euros?
What is rather interesting about the Malthouse compromise is that it has support from both the Remain and Leave camps. The impact this could have on the pound to euro exchange forecast could be significant.
This is because the reason why Sterling remains under pressure is the fear of a “No Deal” Brexit by the end of March. Although this appears unlikely, there is still a risk that this may happen.
The next vote in the House of Commons is due to take place next week. I think it will be difficult for Theresa May to have got any further improvement on the Irish deal. So, I expect this to be another difficult challenge for the Prime Minister.
UK economy faltering but still growing
During the course of this week, the Pound has dipped marginally against the Euro. This is after UK Services data showed a fall to its lowest level in 2 1/2 years. Although this is above 50 which represents growth, this is still a rather concerning piece of data. This highlights the impact that Brexit is having on the British economy.
If you have a currency transfer to make and would like to save money when converting Euros compared to using your own bank, then please contact me directly for a free quote. I look forward to hearing from you!
Tom Holian email@example.com