1.34 was seen on the markets today! Those who read my last post would have seen I predicted this, but I certainly didn’t think it would happen the next day! GBP-EUR rates have been dropping by at least 1% everyday. We are into the last week of the election and there is still no front-runner. The number of possible coalition partnerships are also in the double digits. Who can even guess at the nature of those partnerships once the negotiations take place following the election results.
We have three days of trading respite while the banks are closed. The rates will continue to move down, as other countries will trade on the bank-holiday, but not to the same degree. But to put the 1% a day change into perspective. Anyone looking to buy a 100,000Euro property, will find it is becoming £741 more expensive a day at the current trading levels to achieve this figure. If you have a requirement over the next few months, I strongly urge you get in touch to discuss how to peg the rates at their current level while they are still historically favourable.
Those waiting for the rates to come back up past 1.40 will likely be disappointed. At this point any coalition that emerges will have such a ‘jumbled’ approach to economic policy that market confidence in the UK economy will take months to win back. Email me on [email protected] over the long weekend to discuss how to navigate the next 3 months. Euro sellers, after months of anguish, you have been presented with a great opportunity – get in touch in the same way, and we can discuss how to stay in contact and ride this surge of Euro strength in your favour.