In this update about buying Euros, we’ll examine how the Pound has spent most of the month of April slowly losing the gains made against the Euro, during the first quarter of this year.
Despite the disappointment of a Brexit deal not being agreed by the end of March, the Pound remained at highs of 1.1730 on 1st April. However, as recently as last week the Pound had slipped to 1.1520, as the market adjusted to a lack of progress on Brexit.
However, today on the last day of the month, nicknamed ‘April showers’, just as most of the UK enjoys some rare and much-desired blue skies, there was news of a potential breakthrough in Brexit talks between Britain’s two leading political parties.
According to media reports, the tone of talks between Theresa May’s Conservative Party and the Labour Party have improved, making substantive moves. This has prompted hope that an agreement could be reached this week. This potentially includes membership in a Customs Union, while also avoiding the political risk of the UK having to take part in the forthcoming European elections.
This speculation has helped the Pound experience one of the biggest daily gains seen this month, reaching a high 1.1639 (at the time of writing) for the first time since 10th April.
We will be watching closely to see if the latest developments are a real breakthrough in the Brexit episode or just another false dawn. This would be a familiar disappointment we have experienced far too often in the last few years, as Brexit has dictated most of the big moves in the currency markets.
I sit here hoping that Britain’s two leading parties can start working together for the greater good of the country, rather than age-old enemies battling for political power. However, the cynic in me finds it hard to believe that we are getting closer to drawing a line under this stage of Brexit, and making some conclusive progress.
Is the Euro going up or down against the Pound?
If history is to repeat itself, and we don’t hear of any progress on Brexit talks, then today’s gains for the Pound could be quickly turned into tomorrow’s losses. If progress is made, the Pound could be in for more days on the rise. History would suggest that there is more uncertainty to come for Brexit and the Pound before we see this.
Feel free to contact me directly if you’d like to discuss these factors, and the potential impact they could have on your currency transfer. You can email me directly here.