The Pound vs the Euro has endured a difficult week but has ended on a high as the topic of Brexit problems do not appear to be as bad as have been previously made out.
Following the European Summit which ended on Friday afternoon European Council President Donald Tusk has suggested that the deadlock has been exaggerated and this has led to the Pound having a surprisingly strong finish to the week against the single currency.
Prime Minister Theresa May has been trying to remain positive and although EU Chief Brexit Negotiator Michel Barnier has talked of deadlock Donald Tusk has said his role will be a ‘positive motivator for the next five or six weeks’ and this has helped the Pound to end the week on a high vs the Euro.
The ‘divorce bill’ is one of the sticking points with talks progressing between the UK and the European Union but Theresa May has hinted that any payment would be part of the ‘final settlement.’ I personally think until there has been an agreement we could still see the talks failing to really progress and this is likely to keep the Pound under a lot of pressure.
The other main topic of discussion is that of whether the Bank of England will or won’t raise interest rates when they next meet on 2nd November.
Inflation hit 3% earlier this week which is clearly too high and as inflation is one of the central bank’s key responsibilities then there is a strong possibility of a rate hike. However, as average earnings are lagging behind I am not entirely convinced that we will see a rate hike in the next fortnight.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident that I can offer you bank beating exchange rates as well as helping you with the timing of your currency transfer.
If you would like a free quote when buying or selling Euros then contact me directly and I look forward to hearing from you.
Tom Holian email@example.com