Sterling has been trading close to a 2 year high against the Euro in the last week as it appears as though the latest Brexit news is helping to support the value of the Pound against a number of different currencies.
Will Article 50 be extended?
The likelihood is that we could see an extension to Article 50 and this has helped the Pound to increase as investors look to second guess what may happen in the next few weeks.
German Chancellor Angela Merkel has suggested that she is willing to allow more time for the talks to progress and with just one week before the UK is set to hold its next ‘meaningful vote’ in the House of Commons we could be in for a very volatile period coming for Sterling exchange rates particularly against the Euro.
How will the Brexit vote affect GBP/EUR rates?
It has been made evident since early December that MPs are not happy with the current terms being offered by the Prime Minister, and with less than a month to go Theresa May is running out of time to get her proposed Brexit deal through.
If we see another defeat next week then this moves us to either the option of a ‘no deal’ Brexit or an extension. I personally cannot see a ‘no deal’ happening so in my mind the likelihood will be for an extension and I think this could move the Pound in an upwards direction against the Euro.
Further Sterling strength could be on the horizon
As we saw over two years ago when the original EU referendum took place, the reason why the Pound plummeted against the Euro was because of the risk to trade. An extension allows a period of relief and this is why I think the Pound could move up against the Euro in the next few weeks, providing some better opportunities for those looking to send money to Europe.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident that I can offer you bank beating exchange rates when transferring currency. If you would like a free quote, or just has some questions about GBP/EUR rates, you can contact me directly using the form below. I look forward to hearing from you.