The pound to Euro rate has been a rather unpredictable one but since the October announcement at the Tory Party Conference that Theresa May was seeking a hard Brexit, the pound has opened and entered new territory against the Euro. The expectation is that the pound could not drop further with many commentators expecting that we could see parity. This has already been pretty much reached back in 2008 at the lowest we have ever had on GBPEUR, I genuinely believe we could see this again. If you are buying Euros with pounds I really think you should be hoping for the best but planning for the worst!
Rates never move in a straight line but with the UK economy starting to show signs of pressure, we should soon start to see the pound struggling not just under political fears but also economic ones. This week is key data tomorrow with UK Inflation data and then Wednesday is the latest Unemployment data. Thursday is the latest European Central Bank (ECB) decision which will I believe be very important on Euro rates, will the ECB look at more QE? Personally I think they will not look to increase their QE program and the Euro will rise.
If you are buying Euros with pounds the next few weeks are going to be very important in determining what will happen. The market is predicting further falls and there are record bets against the pound. If you have a transfer to make in the future understanding this market is crucial to helping you maximise your position.
For more information at no cost or obligation please speak to me Jonathan on [email protected] and I can help with the planning and execution of of your transfers.