Since the start of November GBPEUR central exchange rates have increased from 1.1060 to 1.1950. Therefore a €200,000 purchase is now £13,467 cheaper.
The reason for the rise is that the High court in the UK ruled that Prime Minister Theresa May does not have the power to invoke Article50 and therefore start the process of leaving the EU. This means that investment has re entered the UK as remaining part of the single market is now an option.
As for the Eurozone the Central Bank have announced they will be extending the Quantitative easing program and will be therefore injecting another 540 billion euros into the economy to stimulate growth.
This week the Federal Reserve (US central bank) raised interest rates from 0.5% to 0.75% and analysts at ING are predicting EURUSD exchange rates could reach parity. If this occurs I expect the pound will then make further gains against the euro and GBPEUR exchange rates will finish the year in the low 1.20s.
Looking ahead to next year the major talking point will be the Supreme Court decision in January. If the Supreme Court rule in favour of the High Court I would expect to see the pound remain buoyant at levels we have become accustom to throughout December. However if the Supreme Court overturn the High Court, I expect the pound to crash as an exit from the single market will be on the horizon.
The problem euro buyers and sellers have is that it’s very difficult to predict the Supreme Courts verdict!
If you are buying or selling euros in the upcoming months and want to achieve rates of exchange that are better than your bank, whilst receiving regular economic information feel free to email me with your requirements [email protected] or call the trading floor Monday morning on 0044 1494 787478 and ask for Dayle Littlejohn.
If you are trading a currency pair that I have not covered, feel free to email me with the pair (GBPUSD, GBPAUD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is [email protected] and I look forward to receiving your email.