Sterling Euro exchange rates fell last Friday by as much as 10 cents as the public chose to vote to leave the European Union.
Last Thursday night the odds were 1-10 on to Remain so it looked an almost certainty that the status quo would continue.
However, the surprise result caused huge movements on GBPEUR & GBPUSD rates.
The foreign exchange markets appear to have settled down over the last 2 days but Bank of England governor Mark Carney has just spoken this afternoon and suggested that the uncertainty of the Brexit could weigh on the economy.
Carney has also said that the ‘Brexit decision is a major regime shift’ and the British economy will probably need more stimulus.
This news has caused Sterling to fall below 1.20 against the Euro and back into the 1.32 levels vs the US Dollar.
This has again caused a loss of investor confidence in Sterling and just when we thought the bad news was over this has again made things worse for Pound Sterling exchange rates.
This is great news for anyone looking to sell currency to buy Sterling but like with the recovery of the FTSE this week we could see Sterling recover quite quickly as at the moment one of the most obvious issues hasn’t been pointed out.
The real issue for me is that the Brexit vote does not just cause problems for the UK and therefore Sterling but it could also start to have a contagion effect in Europe as if others countries look at holding a referendum this could cause problems on the continent and therefore arguably the Euro could suffer in time to come.
Having worked in the industry for 13 years this period is more volatile than the credit crunch for Sterling Euro exchange rates so it is important to be aware and be ready to act quickly if the markets move in your favour.
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]