The Euro has got to its best level to buy Pounds since November as the Pound has continued to weaken owing to the uncertainty of what is happening in both UK government and the Brexit negotiations.
The Tories have finally come to an agreement with the DUP but this has done little to help the Pound as we continue to see GBPEUR exchange rates struggle.
Yesterday Bank of England Governor Mark Carney has called upon British banks to raise their capital requirements in order to avoid the risks of a downside to the market. The figure is as high as £11bn which has caused a bit of concern for the sector and this has resulted in a fall for the Pound.
The Pound also fell against the Euro after European Central President Mario Draghi hinted that an interest rate hike in Europe may be coming at some point in the future.
He has suggested that growth in the Eurozone is not as dependent on as much stimulus used previously which means he could be looking at also reducing the taper that is happening every month.
Consumer and Business Confidence data in both Germany and Italy have also come out better than expected and if other countries within the Eurozone reflect the same tone then this could strengthen the Euro further against the Pound.
Overall, I think we’ll see further losses for Sterling vs the Euro in the short term as we are still politically unstable and we don’t know what will happen next with the Brexit talks.
Having worked in the foreign exchange industry since 2003 I am confident not only of being able to offer you better exchange rates than using your own bank as well as helping you with the timing of your transfer.
If you need to buy or sell Euros and would like further information or a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]