The Pound vs the Euro has crashed to its lowest point since October during today’s trading session owing to the change in the voting pattern by the Bank of England.
The vote changed from 5-3 to 6-2 compared to June’s vote and this saw the beginning of the fall for the Pound vs the Euro. This was continued by the comments made by Bank of England governor Mark Carney who warned that uncertainty caused by the Brexit is already weighing heavily on the economy.
The Bank of England also cut the growth forecast from 1.9% to 1.7% for this year and downgraded next year’s forecast from 1.7% to 1.6%.
Investment in the UK is clearly falling owing to the Brexit and to me I think we could see further weakness for Sterling vs the Euro in the weeks ahead.
Inflation is still higher than required and with the BoE not looking to raise interest rates anytime soon this is another reason for the Pound’s demise against the single currency.
If you’re in the process of buying a property in Europe 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 for a small deposit.
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 protected] and I will endeavour to get back to you as soon as I can.