To make predictions on the future of pound v euro exchange rates it’s important to understand why GBPEUR exchange rates are fluctuating in the lower teens at present. I believe there are three main reasons.
- The UK’s decision to leave the EU has caused the pound to devalue approximately 15% across the board against all major currencies. Currently negotiations are not going well between the UK and EU and it was only this weekend the Irish PM insisted the UK are running out of time. Furthermore economic data for the UK has not impressed in recent weeks which is no suprise and Governor of the Bank of England Mark Carney warned that Brexit is starting to have a negative impact on the UK economy.
- President of the European Central Bank has been giving off a fairly bullish vibe in recent weeks suggesting growth is steady within the EU and in the Autumn the ECB will start to re-evaluate the quantitative easing program. It is widely expected the President will begin tapering the program within the next 12 months.
- Investors have been selling off the US dollar in recent weeks, because of Donald Trumps antics and ERUSUD exchange rates have increased 14 cents in 4 months. As the demand for the EUR has increased GBPEUR exchange rates consequently have dropped.
Looking further ahead, I expect Donald Trump to remain under pressure due to being under investigation for ties with the Russians and that the UK do not look like they will progress with Brexit negotiations anytime soon. Therefore I expect GBPEUR exchange rates could break through the 1.10 in the upcoming weeks however with rates so low at the moment I can’t help but think GBPEUR exchange rates are close to bottoming out.
If I were buying or selling euros with pounds in the upcoming weeks, I would try and catch the market on the back of a spike. The best way to do this is by using a limit order which allows you to give us your target rate and if we can achieve that rate our systems will automatically buy it for you.
The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade GBPEUR / EURGBP at rates better than other brokerages and high street banks. I would recommend emailing me with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company firstname.lastname@example.org. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible 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! **