This week is vital for the GBPEUR exchange rate with some key news expected on Brexit. Expectations are that we might well see the pound rising higher but with plenty of uncertainty over just how viable any deal is, and many harder Brexiteers threatening to withdraw support, the pound could be in for a choppy week.
GBPEUR levels have almost slipped below 1.13, as the market prices in the increasing possibility of a no-deal Brexit again. David Davis has been very vocal in threatening to withdraw support as a result of the compromises that the Chequers plan entails. It appears that this will be a very busy week as we get closer to understanding just what lies around the corner at this very busy time.
Expectations for the pound to euro rate are very heavily centred around the upcoming EU Summit and the fallout from it. Overall, I think the negotiations will take much longer than many expect, and last week was a stark reminder to those buying euros with pounds that nothing should be taken too much for granted.
If you have a position buying or selling euros for pounds in the coming weeks, I would suggest careful consideration of your requirement and to not be too reliant on a certain outcome. Misplaced expectations can lead to major disappointment in the market, as the weaker pound has this week.
Clients with a position buying or selling euros for pounds have other news to keep in mind this week with the latest UK Unemployment due to be released, as well as the ECB, (European Central Bank) meeting news too.
If you’d like to know more about the above, or to ask another question and get a better understanding of the currency markets and the factors likely to impact exchange rates, please feel free to use the form below. I’ll be more than happy to get in touch personally and discuss your queries.