EU Deal Reached which could cause Sterling Strength vs the Euro (Tom Holian)

My prediction for next week is for a big recovery for Sterling exchange rates and some better opportunities to buy Euros as a deal has been reached in Europe late last night.

The fears of a Brexit have caused big problems for Sterling Euro exchange rates over the last few weeks and with a deal now in place I expect to see Sterling recover some of its recent losses against the single currency.

My reasoning is that many global investors will have overlooked the Pound during the last couple of months owing to both the political and economic uncertainty surrounding the British economy and with a deal now in place I expect confidence in Sterling to now return.

Over the last two months Sterling has fallen against the Euro by as much as 10% and it’s not as if the Eurozone’s economy is in a much better place compared to early December so when you look at GBPEUR exchange rates the question is why have they moved so much during this time?

The Pound has suffered owing to a number of factors including falling inflation, a change in the Bank of England’s voting policy from 8-1 to 9-0 in favour of keeping interest rates on hold and the risk of a Brexit.

Therefore, a bit more certainty has returned and I expect this to be reflected in Sterling Euro rates during the early part of next week. Good news if you need to buy Euros.

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