The EUR has gained value against GBP recently, for the most part, due to the on-going uncertainty surrounding the UK’s future participation in the EU. With next week’s referendum hanging over the markets, it is no real surprise to see Sterling wobble ahead of such a key vote. The Pound did find some support following better than expected Retail Sales figures and unemployment data but the general trend has certainly been a negative one. With the latest pre-polls showing the Leave camp holding a slight lead, investors are starting to fear the worse.
This negative feeling has dragged Sterling’s value down, as investors are starting to factor in a possible Brexit. The current value is only in my opinion due to this uncertainty and therefore any clients holding EUR who are not willing to gamble on the result of the referendum, should take advantage of the gains they’ve made and not gamble on such a volatile and unpredictable market.
Those clients holding the single currency should also head a warning, as it is not only the Pound that is going to be negatively affected by a Brexit. The EU will be losing an integral member and this will no doubt cause confidence in the EUR to wane. How this will correlate against GBP in the aftermath of a Leave vote is difficulty to quantify but do not expect one way traffic on the exchange.
If you have an upcoming EUR currency requirement and would like to protect your positon ahead of next Thursdays vote, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on firstname.lastname@example.org