Sterling Euro exchange rates have just had a positive month during April but the final day saw an end to its recent strength.
Eurozone GDP data came in better than expected at 0.6% compared to the expectation of 0.4% and with Eurozone unemployment coming out the best in over 4 years at 10.2% this caused the Euro to strengthen against Sterling.
With just less than 2 months to go before the UK goes to the polls to vote in what is arguably the biggest event in UK economic history in a generation the polls are only just in favour of the UK remaining in the European Union.
With President Obama, Bank of England governor Mark Carney, the European Central Bank and UK government all in favour of staying in the European Union it looks unlikely that the UK will vote to leave.
However, what is clear is that for the next 2 months the currency markets will remain very uncertain indeed.
Next week sees the release of both Services data and Retail Sales data on Wednesday and if these come out strong like the recent GDP data then I expect to see further Euro strength vs the Pound.
During May I think we could see big movements for Sterling Euro exchange rates as the Brexit uncertainty continues and a sensible option could be a forward contract if you need to buy or sell Euros over the next couple of months.
This allows you to fix an exchange rate for a future date for a small deposit and it will eliminate the uncertainty of where the currency markets may be during this time. This is particular useful if you’re on a tight budget and are in the process of buying a property in Europe.
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]