GBP under pressure against EUR caused by no-deal Brexit talks & potentially strong EU data

Sterling drops as plans for 'no-deal' Brexit are announced, where to next for GBP/EUR?

The Pound has come under significant pressure once again over the last few days hitting its lowest level to buy Euros since October 2017. The topic of Brexit has raised its ugly head once again and at the moment it appears that the UK is potentially gearing up for a no-deal Brexit.

Over the bank holiday weekend Emmanuel Macron has spoken out about the subject telling Theresa May that the unity of the European Union comes before that of its close ties with the UK and that the recent deal proposed at Chequers does not work for the EU.

The real concern for the French President is that if the UK gets its own deal this could lead to a potential problem as some other countries within the EU may look to achieve their own deal and this could lead to an unravelling of the European Union in the future.

We have seen further political instability once again with the Conservative Party with Theresa May disagreeing with some of Chancellor Philip Hammond’s suggestion that a no-deal Brexit could result in the UK reducing its GDP by as much as £150bn in the next 15 years.

However, May has said that these figures were a ‘work in progress’ but even so this caused investor confidence in Sterling to drop which resulted in the GBPEUR exchange rate falling below 1.10 to its lowest point to buy Euros all year.

Friday could see the biggest daily movement for GBPEUR rates as we have two major releases for the Eurozone.

Eurozone Unemployment has been falling recently which is good news for the single currency and with Eurozone inflation for August due out at the same time of 10am we could see some Euro strength to end the week if both releases come in better than expected.

Therefore, if you’re thinking about selling Euros to buy Pounds it may be worth holding off to see what happens to GBPEUR rates.

If you would like further information or a free quote when buying or selling Euros compared to using your own bank then contact me directly using teh@currencies.co.uk and I look forward to hearing from you.

Having worked in the foreign exchange markets for one of the UK’s leading currency brokers since 2003 I am confident that I can assist you in saving money as well as helping you with the timing.