Sterling exchange rates have just started to fall from their recent 3 month high against the Euro after hitting the higher end of the 1.14 level on the Interbank level.
EU Summit to affect GBP/EUR rates
The next big event which is likely to cause a huge amount of volatility will come towards the end of next week with the EU summit, due on October 17th-18th.
The focus will clearly be on the latest Brexit developments and earlier this week it appeared as if things are getting closer to being concluded.
However, as we have already seen on a number of occasions since Article 50 was triggered 18 months ago, there have been a number of false dawns for the Pound and this is why we have seen the Pound start to retreat from its recent gains, as investors are getting concerned that things may not go as some hope they will at next week’s EU meeting.
The Irish border issue is still high on the agenda and as yet nothing has been finalised as to what will happen to the customs union and how trade will pass through from the European Union and this is keeping the Pound on tenterhooks versus the Euro.
Brexit Secretary Dominic Raab will be travelling to Brussels on Monday to try and get a deal agreed prior to the summit next week so we could potentially see a big movement on exchange rates early next week so make sure you’re well prepared for any movement on Pound to Euro rates next week.
Many people are still waiting to see what will happen at the EU summit next week, but if a deal does get agreed we could see some surprising movements for Sterling, which could move very quickly in the Pound’s favour. If you’re risk adverse it may be worth getting something organised early next week.
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