The Pound against the Euro has already fallen by over 8% since the snap general election was announced in Easter.
Since then the election highlighted the uncertainty of the British political system and we have also seen the triggering of Article 50 which was Britain’s announcement that we will begin talks to leave the European Union.
Not a lot has been going the right way in terms of Sterling and this week we saw GBPEUR exchange rates hit their lowest level to buy Euros since October 2016 and prior to that the lowest since 2011.
Having worked in the foreign exchange markets since 2003 I also remember clearly what happened almost a decade ago at the start of the December period.
One of the major newspapers in the UK suggested that the Pound could hit parity against the Euro by Christmas when rates were trading at the levels currently seen.
Within days most of the other newspapers had jumped on the bandwagon and we saw a herd mentality to sell Sterling which caused the Pound vs Euro rate to hit close to 1 for 1 between the Christmas and New Year period.
With so much uncertainty ahead for the UK particularly in regards to the Brexit negotiations things could get worse to come for the Pound.
As we are currently facing one of the biggest political events in a generation it is difficult to see where confidence in the Pound will come from.
The Euro is trading at an 18 month high vs the US Dollar and as well as Sterling weakness we are also seeing a huge amount of Euro strength.
If you have a 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@example.com and I will endeavour to get back to you as soon as I can.