In today’s update about when to buy Euros, we’ll see how the currency markets have stagnated, since the recent decline in the Pound’s value against the Euro and US Dollar.
It looks like the market is now waiting to see if the Conservatives adopt a “Brexit at all costs” approach. Also, investors want to see whether Labour will push for a second referendum. This is because the Liberal Democrats received many votes, an 18.5% share of the vote, in the European elections, pushing this agenda.
Pound to Euro forecast
If we lean towards a no deal Brexit, we could well see the Pound fall in value. If we lean towards a second referendum, it’s likely that we’ll see Sterling strength.
The front runners to become the new Prime Minister are embracing a no deal scenario. This reflects the recent popularity and rise of the Brexit party, which won a 31.7% share of the European election vote.
Both Boris Johnson, the current frontrunner, and Dominic Raab have taken this line of thought. The success and public support for the Brexit Party have put pressure on the Conservatives to take a harder stance on Brexit and potentially leave without a deal. This is one of the reasons we have seen a decline in the Pound’s value.
Meanwhile, cross-party talks between Labour and the Conservatives have broken down and look like an impossible task.
It is difficult to see any near-term gains for the Pound, as current public and political opinion are pointing more towards a harder Brexit come October 31st. If you have the requirement to complete an exchange, get in touch with a currency broker who can keep you up-to-date with market movements. This can help you with understanding the factors that could impact your currency exchange.
If you have an upcoming currency transfer, get in contact and speak with an expert to see how you can mitigate risk on your future currency transfers. Feel free to contact me directly here.