Sterling euro rates hits 3 month high as Irish Border issue progresses

Sterling Euro rates hits 3 month high as Irish Border issue progresses

The pound vs the euro is now trading at its best level to buy euros since early July as the Irish border talks appears to be going well behind the scenes.

This particular issue has been a big sticking point for the UK economy and at the recent talks a couple of weeks ago in Salzburg, the talks ended in a stalemate with the Chequers plan having been rejected by the European Union with no other alternatives being offered at the time.

However, in recent days some officials in Dublin have been saying that talks are going well and they are looking to have a solution in place in time for the EU summit, which takes place in less than a fortnight on October 18th.

EU Chief negotiator Michel Barnier appears to be looking at alternative suggestions to those previously offered by the UK about Ireland. This has been taken well by the market with sterling making some favourable gains agsint the single currency hitting rates of 1.1350.

A compromise appears to be getting nearer between the UK and the European Union, and this is why we have seen some support for the pound vs the single currency which is good news for anyone looking to transfer money to Europe.

We have clearly had a number of false dawns for the pound since the Brexit vote in June 2016, and the triggering of Article 50 18 months. The question is could this be another one?

I personally think that the Irish border issue is crucial to the outlook for sterling vs the euro in the near future, if a solution can be offered that works for both parties I think this could provide the pound with the boost it needs against the euro, so make sure you’re well prepared for a lot of volatility as this news story gathers pace in the next fortnight.

To discuss the factors likely to impact GBP/EUR exchange rates in the short term as the Brexit deadline draws near, use the form below to get in touch. I’d be happy to contact you personally and discuss your enquiry.