Strategies to maximise currency exchanges on GBPEUR

I expect GBPEUR will remain range bound between 1.16 and 1.1750 this week. If you are considering any currency exchanges involving buying Euros I would suggest buying sooner, if you are selling euros to buy sterling, then holding on may not be too bad an idea to see if it gets better.

This analysis is all based on the fact that the pound is once again in the firing line and whilst the positive GDP data for Q1 should provide decent support, the chance of further losses if the UK data is disappointing look to me fairly high. Let us look at the facts, there are a few key reasons that sterling will remain weaker in the coming weeks and months including:

– The prospect of the UK leaving the EU. The uncertainty as to just how this will affect the UK and sterling is a reason sterling in unlikely to make significant gains. This uncertainty appears to me to holding back the pound.

– The UK government is losing credibility over plans to tackle UK debt. The fear is that lasting damage has been done to the UK’s recovery that will hurt not only growth in the future, but also efforts to tackle the UK’s debt problems .

These factors are well publicised and as explained will not alone necessarily cause the GBP to suffer major losses. Combined with poor UK data however they mean the chance of the pound making any significant comeback look severely limited.

For more information on everything driving your GBPEUR rate, please feel free to contact me Jonathan on [email protected]