The EUR has started this year in the same vein as it ended the last, finding plenty of support from investors.
Whilst it has dipped slightly from its 6 year high against Sterling, it has still found support around 1.13, which remains an extremely attractive sell price for those clients holding the single currency.
It has performed best against the USD of late, rising to a three year and some of the best levels we’ve seen since the EUR was first introduced as a currency.
Whilst rates remain at such attractive levels, it may be prudent to remove the risk of what may lie ahead. The markets are likely to be driven by developments with Brexit negotiations and fluctuations with interest rates & monetary policy, which will likely also have a direct impact on exchange rates.
For this reason I would be looking to take advantage of the current sell prices against both GBP and the USD.
Whilst the Eurozone economic prosperity has exceeded expectation at almost every turn, the EUR has at least in part been propelled to the current levels by a complete lack of investor confidence in the UK economy and ultimately Sterling.
UK Prime Minister Theresa May has reshuffled her cabinet in the hope of bringing some stability and in turn some confidence back to the markets. However, investors have not reacted particularly positively to this development and whilst the Pound has found a foothold of late, a sustainable increase against the EUR looks unlikely under current market conditions.
With so much market focus and emphasis on the UK’s separation from EU neighbours, any positive strides forward in this sphere is likely to benefit Sterling immensely. Brexit has been a weight around its neck for the past 18 months but personally, I feel any resolution in the short-term is highly unlikely.
It is far more conseivable that negotiation’s will continue to stagnate, as they did during the early stages, and this in turn is likely to handicap any sustainable increases for the Pound.
Therefore I would be tempted to remove any risk from the market and lock in any short-term currency exchange before Brexit negotiations resume.
If you have an upcoming GBP or EUR currency transfer 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 eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on firstname.lastname@example.org to find out all the options available to you ahead of your currency transfer.