If you’re interested in a Pound to Euro forecast, you may be interested to know that the Pound (GBP) has seen wide fluctuations since markets opened this week. Brexit speculation briefly pushed the GBP/EUR interbank exchange rate to its best levels in nearly 2 years, before sending it tumbling again. Sterling has traded steadily today ahead of further Brexit developments.
Theresa May’s amended Brexit deal was essentially rejected by MPs in Parliament for the second time last night, losing by 149 votes.
A vote on whether or not to move forward with a no-deal Brexit will be held this evening, followed by a vote to request an extension to Article 50 tomorrow evening, if this one is rejected. In my opinion, today’s vote on whether to leave the EU without a deal is all but a certainty to fail. Tomorrow’s vote on delaying the Brexit process is all but certain to pass.
In this situation, Sterling could find support from hopes of a no-deal Brexit being avoided. However, uncertainty over how the process will unfold from here is likely to keep Sterling from strengthening significantly.
The threat of a no-deal Brexit, an important negotiation driver for the UK, could well handicap Sterling’s progression in the weeks and months to come, as discussions with EU counterparts continue.
Is the Euro going to go up?
The Euro on the other hand could see a shift in movement, if tomorrow’s key German and French inflation rate statistics from February surprise investors. If German inflation beats forecasts, it could make investors more confident about Eurozone price pressures. The Euro could see stronger support, potentially pushing the GBP/EUR interbank exchange rate lower.
If you would like to discuss anything you have read in my report, or have a currency exchange involving GBP/EUR, please do feel free to email me directly here. I will be happy to assist.