Sterling has hit the best rate to buy Euros in over five weeks after it was announced that the terms of a transitional deal has been agreed.
Brexit Secretary David Davis and EU Chief Negotiator Michel Barnier have agreed the legal text for the transition and this helped the Pound to climb to these recent highs against the single currency providing some excellent opportunities to send money to the continent.
The reason why this has helped the Pound at least for the time being is that it means that we should get some stability during the period between March 2019 and December 2020 as it will mean Britain will continue operating under EU rule during this period.
There is still however the ongoing issue of what will happen with the Irish border issue and until we get some clarity this could continue to weigh on Sterling.
Later this morning UK inflation is due to be released and this could cause a lot of movement for Pound vs Euro exchange rates ahead of the interest rate decision due on Thursday.
At the moment there is approximately a 75% chance of an interest rate hike coming in May so if inflation remains high this could add further support for an interest rate hike to come.
UK Unemployment figures are due out tomorrow morning with Average Earnings published at the same time.
Unemployment levels are close to their lowest level since records began but Average Earnings have been struggling to keep up with inflation.
However, if wage growth increases tomorrow this could also give support for an interest rate hike to the Bank of England so I think we could see GBPEUR exchange rates go in an upwards direction.
If you would like a free quote when exchanging Euros compared to using your own bank then feel free to contact me directly and I look forward to hearing from you.
Tom Holian email@example.com