GBP/EUR Forecast – Brexit Developments Continue to Drive Market Sentiment

Pound to Euro Exchange Rates: UK GDP Released this Morning

GBP/EUR rates have moved back towards 1.14 this morning, following a dip for Sterling during Thursday’s trading.

This downturn could be linked to the latest Brexit update. Reports yesterday indicating that UK Prime Minister Theresa May had to concede ground to Brexit secretary David Davis, regarding the customs union and Northern Irish border.

These developments could further weaken the PM’s position, although on the flip-side they may also help to quell market fears that Davis was on the verge of stepping down from his position.

If this had occurred it could have potentially devastating effects in terms of investor confidence in the UK economy and the Pound would surely have come under huge pressure against its Euro counterpart.

With the Bank of England (BoE) seemingly diluting any chance of an interest rate hike in the short-term, it is likely that the markets and GBP/EUR rates in particular will be driven primarily by Brexit developments.

Whilst economic data will no doubt also impact GBP/EUR value, along with any political destabilisation in with the UK or key Eurozone economies, I expect investors to react primarily to Brexit updates over the coming months.

I have advocated to my clients for many months that any short-term market spikes for GBP should be seen as an opportunity. Investor confidence in the Pound is clearly fragile at best and with the UK’s economic standing post Brexit still clouded in uncertainty, we are still far more questions than answers.

Business Confidence figures remain low and whilst a run of improved economic Data could help elevate Sterling’s value to a certain degree, I am not anticipating a major spike from the current levels over the coming days.

If you have an upcoming GBP or EUR currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award-winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.