Was Sterling’s rally against the Euro a false dawn? (Tom Holian)

Sterling vs the Euro hit its best rate to buy Euros since May 2017 after it was announced that a breakthrough deal has happened concerning Brexit.

Prime Minister Theresa May has agreed a deal with the European Union in order to take things forward when the next EU summit takes place on Thursday.

According to reports a divorce bill has been agreed as well as no ‘hard border’ with Ireland.

We have also seen the news that rights of both UK and EU citizens have been agreed which is great news for all concerned.

This caused the Pound to hit a seven month high to buy Euros but could this be a false dawn?

During Friday afternoon’s trading session the rate to buy Euros with Sterling fell by 1% or the difference of £870 on a currency transfer of €100,000, which highlights the importance of keeping a close eye on the currency markets especially at the moment with all the Brexit uncertainty.

It appears as if the markets initially over reacted to the good news and we have seen a big sell-off late on Friday for Sterling against the single currency.

Indeed, even though the news allows things to progress we are still a very very long way away from things being fully settled and agreed.

The good thing is that phase 2 of the talks can now start but there is still a lot of negotiating to occur and with still over a year to debate Sterling is likely to remain under a lot of pressure in the future.

EU chief Brexit negotiator Michel Barnier has said on Friday that the only real option for a future trade agreement will be similar to what is currently arranged with Canada rather than the one in place with Norway.

If you’re in the process of either buying or selling Euros and would like to be kept updated with what is happening over the next few days then contact me directly for a free quote.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident not only of being able to offer you better exchange rates than using your own bank but also help you with the timing of your trade.

Contact me directly Tom Holian teh@currencies.co.uk and I look forward to hearing from you.