Pound Sterling forecast: The Pound last night breached the highest level seen against the Euro since back in May 2017. Giving those looking to buy Euros a fantastic opportunity.
Whether your business has to purchase Euros, you are buying a property abroad or simply need some travel money for a skiing trip then this latest movement has made it a little bit cheaper for you.
There isn’t one substantial reason behind this movement but a build-up of a number of factors that have led to the spike in the market.
Why is the Pound to Euro rate high?
Firstly, we have seen the chances of a ‘no deal’ Brexit decreasing. It seems that most of Parliament are not happy for the UK to end up going down this path, and it had originally been the ‘no deal’ scenario that had weakened the Pound and led to it remaining low for a number of months now.
Yesterday we also saw weakness for the Euro against most major currencies. The head of the European Central Bank, Mario Draghi yesterday held his regular press conference after the ECB interest rate decision.
As expected, there were no changes to interest rates, and indications were that this would be the same now until the end of the year. On top of this, Draghi was also fairly negative in his overview on how the Eurozone economy is performing. It does appear that the Eurozone economy may be facing a bit of a downturn and this would not be good news for Euro exchange rates as a whole, with the markets moving in advance based on speculation this is why the Euro weakened across the board yesterday.
Brexit ‘Plan B’ vote in Parliament next week
Next week on Tuesday 29th we have the next vote in Parliament. This time to see whether or not Theresa May’s ‘Plan B’ has enough support to get the UK a deal with the EU and for things to move along.
It is still unlikely that this will be voted through and what will be interesting is what happens after this, there are many routes that this could take and either way I would expect Sterling to remain volatile over the course of next week.
If you have an exchange to carry out involving buying or selling Euros or Pounds then in this current climate it is imperative you deal with an efficient and proactive currency broker, along with one that will get you the most for your money. I would like to think that we tick all of those boxes. If you would like to contact me personally for a chat about your own personal situation then you are welcome to fill in the form below and I will be happy to get in touch.