The Pound to Euro forecast is for volatility next week. Pound to Euro exchange rates have been trading in a relatively tight range during the course of this week as the foreign exchange markets appear to be eagerly anticipating what may happen next week when MPs will vote on the current Brexit plan on offer.
At the moment it appears as though Therea May does not have the support that she needs to approve this current Brexit deal and I think whatever happens next week with the vote will be crucial in determining the future of the Pound to Euro exchange rate.
With such uncertainty surrounding what may happen next week if the vote does not go through, this could cause further losses for the Pound against the Euro and as we saw with the original referendum back in June 2016 with a 10% fall on Pound to Euro rates a precedent of huge movement in a single day has been set.
Rumours are circulating that Theresa May could fall well short and some Tories have proposed that the deadline of the vote should even be delayed.
With the chances of a ‘no deal’ Brexit increasing this is causing problems for Sterling against a number of different currencies including against the Euro so it may be worth getting things organised prior to the vote next week to avoid any potential pitfalls.
Theresa May has today sent out 30 MPs in order to convince others to vote in support of the current Brexit deal as if things remain the same then this vote could go very badly for the Prime Minister next week.
Pressure off the Euro as French protests end
Turning the focus back towards the continent, the Euro has started to strengthen after the fuel tax problems in France have stopped at least for the time being.
Emmanuel Macron has announced that the rise in fuel tax has been suspended for 6 months and this has helped the Euro to regain some of its recent losses against both the US Dollar and the Pound. In the last fortnight the French leader was coming under immense pressure with riots in Paris and many blockades across France so with things now a lot calmer this has come as welcome news for the Euro.
With such a big vote next week, if you’re in the process of buying Euros and would like to save money on exchange rates compared to using your own bank then contact me directly using the form below and I look forward to hearing from you.