The pound to euro exchange rate is very volatile once again as Brexit developments take shape and investors begin to take stock of the latest developments in Italy. The GBPEUR rate is now very much at the mercy of these important international events. Clients with any GBPEUR position buying or selling, should be aware of the latest news.
It seems that market confidence in a Brexit deal being reached is increasing, which should in turn lend support to the pound as investor’s worries about a no deal Brexit scenario subside.
A great example of all of this will be the upcoming EU Summit on the 18th October when the UK and the EU will meet to discuss the latest negotiations and try to thrash out a deal. Is a deal likely? We could well find that this rolls on further, perhaps until November or even the end of the year.
Nothing is yet set in stone; investors expecting the pound to rise dramatically could be in for a nasty shock if a second referendum or even a General Election is called.
On the flip side, for euro sellers waiting for the pound to weaken, the Italian debt problems are again in the spotlight. The possibility of overspending by the new Italian Government could easily send the euro much lower, the market has lots of fresh fears over Spain too. Both economically and politically, the Eurozone still has many questions to answer which could derail any predictions on GBPEUR rates.
If you have a position to buy or sell euros the key point is making careful plans around the latest market developments. By working hard to understand the latest news and formulating a strategy, we can help to maximise the position. Feel free to use the form below if you’d like us to keep you updated with the latest on Brexit and other factors that are likely to impact GBPEUR exchange rates.