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