Should I buy euros with pounds now?

GBPEUR forecast How both currencies could be impacted by a no deal scenario

With GBPEUR exchange rates performing relatively well in comparison to last year, there is a strong argument to purchase euros now. At present the Euro is under pressure due to Italian politics which is making euro purchases cheaper. Reports are suggesting that anther snap election could take place as early as the end of the summer. The concern for the euro is that the Eurosceptic parties could gain further momentum and therefore try to remove Italy from the euro.

Leader of the League Matteo Salvini, has gone one step further and stated it won’t be an election and in fact another referendum, insinuating if they gain more power and form a government they aim to pull Italy away from Europe.

However we are now one month away from the EU summit and both the UK and EU have made it clear progression needs to be made in regards to Brexit. The main talking point is the customs union and Irish border. UK Prime Minister Theresa May is stuck between a rock and a hard place as she doesn’t want to break up the UK by allowing Northern Ireland to remain part of the customs union but at the same time she doesn’t want a hard border in Ireland. The problem is that she needs to pick one or the other.

Last week Irish Prime Minister Leo Varadker warned the UK and suggested “without the Irish border resolved there can be no withdrawal agreement”. A no deal I don’t believe is an option for Mrs May and in my opinion we would see a snap election before this happened. 

For clients that are buying an asset abroad short term, I can’t see how the June summit is going to help the pounds value, therefore I would look to purchase upfront as soon as possible.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Dayle Littlejohn) on drl@currencies.co.uk and I will endeavor to get back to you as soon as I can.