The Pound to Euro rate has had some of their worst days since the EU Referendum vote with GBP/EUR levels dropping 3 cents between the high and the low this week. It is no surprise to learn such movements are Brexit related and it should be no surprise to hear that this might well continue further in the days, weeks and months ahead.
Pound to Euro forecast: Will the Pound continue to fall?
The Pound to Euro exchange rate reached a peak of 1.1549, with the lows of 1.1254 tested yesterday. For now, the big question is whether or not the Pound will have further to fall. The likelihood seems strong as we might well see either further resignations from key members of Mrs May’s Government, or more of an effort to topple her from her own Party.
It is well worth noting that Pound to Euro rates have been much lower throughout the Brexit process. We were at 1.0995 only 10 weeks ago, and 1.1190 on the 31st October. Sterling has been very volatile against the Euro and this seems highly likely to continue. Increased prospects of either Mrs May being ousted as leader could easily destabilise markets. It is well worth pointing out the lows of 1.075 reached in August 2017 too.
To accurately predict what happens next with the Pound to Euro rate requires careful analysis of the market and what lies ahead. This is no easy feat and those with a position to buy or sell, relying on an assumption they believe they know what lies ahead, should be making contingency plans.
Pound to Euro rates: What’s next for the Pound?
Assuming Mrs May can stay on we will now need to prepare for the Parliamentary vote on the Brexit deal. All the indicators are that this will not be passed and what will happen then? No one really knows but we can expect the Pound will continue to be the main recipient of the uncertainty.
Pound to Euro rates are currently mid-range for the high to low performance in 2018, the possibility for further losses is high considering scope for further political uncertainty is so high. Quite often, the biggest gamble in the currency markets is to do nothing, waiting for something magical to happen.
If you have a position buying or selling Euros against the Pound and wish to discuss your requirements and the various options to protect your exchange rate, please do contact me Jonathan Watson directly using the form below.