Sterling Euro Exchange Rates Continue to Drop – Forecast to fall lower(Tom Holian)

Pound to Euro Exchange Rate with UK Election Heating Up

Sterling Euro exchange rates have fallen by as much as 11 cents since the beginning of December as confidence in the Pound continues to plummet.

Over the last 5 weeks the difference on a currency transfer of €100,000 is over £5,900 causing alarm for anyone looking to buy Euros to pay for a property.

Last week Chancellor George Osborne stated that the UK is in for a difficult year and with oil prices falling sharply over the last few weeks this has caused big problems for the North Sea oil industry which is a big part of revenue for the British economy.

There are mounting fears of a Brexit and if we look at past events specifically the General Election and the Scottish Referendum we saw Sterling fall by 5 cents against the Euro in the week leading up to both events.

The Bank of England are due to meet later today and previously we have seen an 8-1 vote in favour of an interest rate hike but with inflation expected to carry on struggling there is a possibility that we may even see a 9-0 split.

If this occurs we could see even further dramatic falls for Sterling vs Euro.

Indeed, when Sterling Euro exchange rates were trading above 1.40 during last year for a sustained period this clearly has had a knock on effect on British exports and with Industrial & Manufacturing data coming out the worst levels in 4 years things are not looking good.

It could even be in the British economy’s interest to have a weaker Pound and therefore I expect Sterling Euro rates to continue to struggle.

Good news for Euro sellers and bad news for Euro buyers.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]

Alternatively call me directly on 01494-787478