In this article about when to Sell Euros, we’ll see how the Pound has continued to lose value against the Euro this week. GBPEUR is now trading 9 cents lower on mid-market exchange rates, compared to the start of the British summer, in May. To put this into monetary value, a £200,000 trade into Euros generates €18,000 less when comparing mid-market exchange rates.
Reports this week from the Bank of England are suggesting that UK businesses have sold off the Pound heavily, to buy foreign currency. This is because businesses are concerned about the Pound falling further at the end of October due to a ‘no deal’ Brexit.
To make it worse for UK businesses, Dominic Cummings, the Prime Minister’s most senior aid, has stated that MPs cannot block a ‘no deal’ Brexit by a vote of no confidence. This will be argued in the weeks to come and will put further pressure on the Prime Minister.
Is the Euro going to go up?
Looking ahead, if the UK approaches October without a deal, I expect the Pound will continue to lose value. This is supported by the Bank of England as, last week, Governor Mark Carney warned Boris Johnson that a ‘no deal’ would cause the Pound to fall further against the major currencies. However, if Boris manages to renegotiate the Irish backstop, which in my view is unlikely, the Pound could start its recovery against the Euro.
Brexit developments will continue to drive GBPEUR exchange rates. If you are converting the currency pair in the upcoming months, for business requirements or a property purchase, I would recommend sending an email with a brief description of your requirements and your timescales. This is very important, because the length of time you have will change your options. I will email you with my strategy and the process of using our company, email@example.com. Dayle Littlejohn.
If you are already using a brokerage and would like to compare exchange rates, email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands!