In this article we look at whether Pound to Euro rates could drop below 1.10 before Christmas? The big news this week is whether Jeremy Corbyn will succeed in engineering a no-confidence vote in the Government. There is growing pressure on Mrs May to come up with the goods and deliver on Brexit, or to take the matter to parliament for them to decide. This could very easily see the pound lower as the market seeks to adjust to the likelihood of further negative news.
There is a growing belief that Brexit could be delayed, cancelled or possibly given back to the people to decide. A key aspect gaining popularity is of course the likelihood of a second referendum. This is a very difficult matter to broach and might see excessive volatility for the pound as the market has to try and second guess the possible implications from this factor.
The pound is very much on the back-foot which might well see us lower if the uncertainty increases so it is well worth trying to track the news to keep up to date with the latest trends and themes. Clients with a position on GBP/EUR could see pound to euro rates drop below 1.10. I really do feel this is a likelihood now as the uncertainty for the UK’s position seems likely to persist.
I cannot see the UK or the pound benefiting from the predicted uncertainty ahead. This week will be crucial as an indicator as to what might be expected from Jeremy Corbyn and whether or not he can trigger a motion of no confidence in the Government and topple Mrs May.
Pound to euro rates could be in for a choppy period as the market sees less volatility and liquidity in the trading sessions. Investors will be less likely to wish to hold the pound as it is at risk of destabilising quickly, if events take a wrong turn.
For me, the risk still remains to the downside for the pound, if you have a currency transfer to consider buying or selling the pounds against the Euro, please do contact me to learn the latest news. You can use the form below to send me a message directly.