This is the final day before next week when Article 50 is enacted, and Pound to Euro rates are already coming under pressure after its gains against the Euro this week.
Sterling had initially rallied against all currencies, not just the Euro, at the beginning of the week as a result of economic data which was heavily suggestive that the UK economy would finally be gifted with an interest rate rise after years of cuts since the financial crisis. When will this happen? It is uncertain when the hike will come, but markets tend to move ahead of events, and Sterling is already two cents higher this week – but rates are beginning to backtrack.
Article 50 is next week, and whilst Theresa May has been doing her best to dispel anxiety surrounding its introduction really since January, there is still real potential for the Pound to lose ground on the day, as a nervous market who had been anticipating this event for 9 months may suddenly snap.
Pound to Euro exchange rates are already beginning to fall. The familiar Friday blues where investors sell off their less stable currency before the weekend in a bid to protect their portfolio. This seems to already be occurring, and this is more exaggerated against the Euro due to some positive business confidence data posted by the Eurozone this morning.
So what can we expect? A very difficult week next week is the likely outcome for Euro buyers. There are a record number of bets in the marketplace currently against the Pound, indication the majority of markets are not expecting a positive outcome.
Euro buyers may be wise to secure a rate of exchange now before the potentially negative impacts from the market next week.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.
I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.