The initial shocks of the UK’s potential EU exit have now been absorbed by the market and the pound and GBPEUR rate have completed a reasonable correction more accurately reflecting the state of the UK economy.
There is still much to move the market this week and next. GBPEUR buyers or sellers should be aware Friday we have UK GDP (Gross Domestic Product) which may well move the market by up to 1 or 2 cents in either direction. Since the start of the year those selling pounds to buy euros have seen the rate drop over 4%! Buying €200,000 is now £7000 more expensive than it was at the start of the year.
Will this decline in GBPEUR rates continue?
So the UK is to call a referendum on being a member of the European Union. Apart from being a real political hot potato and being the ruin of Cameron this could have disastrous effects on the UK. We will not have an answer to the question for many years so now any possible investors in the pound or UK (who are not short on other reasons to be fearful and questioning of the UK) have another reason to be unsure.
Friday’s GDP will offer some confirmation of whether the recent GBP sell off has been warranted. I would not be surprised to see the pounds to euro rates drop a little further on Friday as we realise the dire state of economic growth for the UK.
If you have a transfer to consider and would like more information on what is moving your rate and the best time to transfer, please get in touch. We are specialist currency brokers who offer a personal and proactive service to ensure our clients get not only the best exchange rates, but also the best information on when to trade.
For a free, no obligation discussion of your situation please feel free to speak with me Jonathan directly on 01494 787 478 or email email@example.com
I look forward to hearing from you!