Currency Forecast: Where next for GBPEUR exchange rates?

Sterling continues to slide as no deal concerns remain

The Pound to Euro exchange rate has witnessed a volatile period, but we do still remain in the more familiar ranges. The last 6 weeks have seen around 3% movement on the GBPEUR pairing but it has been within a band of between 1.10-1.16 since April. The next few weeks could potentially offer up the news that provides the market with the information it will need to see us break outside these levels.

The 1.10-1.16 band has actually been in play since August last year, and the rise that we saw to 1.16 was very brief, a much more regular Pound to Euro interbank rate on offer has been between 1.11-1.13, which is where we are currently sat.

October is the next EU Summit where we may well learn of some of the latest news on Brexit, which might well provide the market with the news it needs to see the Pound gain in value. However, I do feel there is a very high chance of all of this not progressing smoothly and the Pound to come unstuck following the uncertainty.

Clients looking to convert Pounds to Euros may wish to consider making plans in advance, as a key point in all of this will be the Conservative Party Conference, which begins this weekend. Theresa May’s position could easily be under threat and there is a growing possibility of a second Referendum too from Labour.

What is clear to me is that nothing will be quickly resolved and the Pound could continue to struggle. I would not be surprised to see GBPEUR exchange rates slipping below 1.10 on increasing signs of a no-deal Brexit.

I feel clients with a GBPEUR position to buy or sell, should be taking care and making plans to try to avoid any sudden surprises which could make their transfer more expensive. The one thing we have learnt in recent years is to expect the unexpected when it comes to Brexit and the rates on GBPEUR!

For more insight into currency transfers, feel free to get in touch using the form below. I will be happy to contact you personally and discuss your requirements.