Euro exchange rates start the year stable against the Pound but weaker against the Dollar

Euro Forecast – The Single Currency is in For Volatility

Euro exchange rates have had a fairly stable start to the year against the Pound, with the exchange rate remaining range bound between the late 1.10s and the early 1.11s. it does feel like this pairing in particular is waiting for what comes next regarding Brexit news.

It it is likely that the pairing will increase in volatility as we edge closer to the U.K Parliamentary vote which is scheduled to happen on January 14th. Parliament are due to return from recess on Monday and personally I feel that we will start to see plenty of political jaw boning and lots of opinions in the lead up to the vote.

The strange thing is that should Prime Minister Theresa May lose the vote this could actually lead to Sterling strength even if she walks away and resigns. Usually political uncertainty can be seen as negative for a currency but in this instance the likelihood of Article 50 being delayed or of Brexit not happening at all woulod increase and this would potentially be seen as positive for Sterling exchange rates.

Either way if you have a large currency exchange to make involving the Pound and/or the Euro then it is extremely important that you are in close contact with a reliable and proactive currency broker. Should you not currently have a broker, or should you find that the one you are dealing with is not quite as efficient as you would like them to be then feel free to contact me (Daniel Wright) directly. You can email me on djw@currencies.co.uk and I will be happy to get back to you with an overview of our services.

Euro/Dollar is a pairing that has not been quite as stable, and we have seen investors piling into the Dollar, making it stronger and more expensive to buy. It does feel that investors are starting to flock to ‘safer haven’ currencies due to the falling global stockmarkets, trade wars and political uncertainty around the world, in times like this you tend to see these safer haven currencies in high demand and therefore their price can rise accordingly.

Once again if you need to make a currency exchange and you would like to speak with me directly I can be reached by emailing djw@currencies.co.uk and i will be happy to get back to you to help you tailor a game plan for your specific situation.