Sterling remains under pressure against both the Euro and the US Dollar (Tom Holian)

GBPEUR Forecast – Internal Market Bill Drives GBP Lower

Sterling has remained under a lot of pressure recently and there appears to be little economic data out to support any positive movement for the Pound.

Pound Dollar exchange rates have again this morning fallen below 1.30 on the Interbank level after breaking through earlier this week.

Meanwhile the Pound vs the Euro has once again fallen into the 1.12 levels which apart from last week is now the lowest rate to buy Euros with Pounds since Autumn 2016.

This is great news if you’re thinking of moving money back from Europe but not so good if you’re looking to send money to the continent.

The current low exchange rates make it even more important to try and squeeze as much as you possibly can from the exchange rate which highlights the need to use a currency broker as opposed to a bank. Feel free to call and ask for Tom Holian on 01494787478 for more information or a free quote.

Lower than expected UK inflation data which came out earlier this week has hugely decreased the chance of an interest rate hike coming this year which earlier this month became a small possibility with a 5-3 vote in favour of keeping rates on hold.

This news has seen more problems heaped on the Pound and with the political situation in the UK not yet settled I cannot see any significant positive movements coming for Sterling.

Indeed, we are now a few weeks into the Brexit negotiations and as yet it has not been decided whether the UK will pay the divorce settlement suggested by the ECB €80bn-€100bn.

Whilst all this uncertainty continues I think we’ll see further losses coming for Sterling against both the Euro and the Dollar.

Therefore, if you’re considering buying a property in France or Spain or indeed any other Eurozone country over the next few weeks it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on [email protected] and I will endeavour to get back to you as soon as I can.