The pound to euro forecast suggests to me that we could see some troubled times ahead where the pound is in the firing line. My main concern for sterling is the upcoming UK local elections where the Conservative Party are expected to take a hit. Whilst not directly linked to the final outcome on the final proposals of Brexit, it may relate to future troubles over how Mrs May is perceived.
Clients wishing to buy euros with pounds wishing for a higher rate will in my view really need some more positive sentiments over Brexit occurring, before we really find some form. Brexit is the main issue driving the pound in the currency markets and positive news has been lacking.
What has helped the pound is the delayed prospect of a no deal, although this is still a possibility when the current extension ends on October 31st. Clients wishing to obtain a higher rate might also find the euro weakens from the European elections on the 23rd May. However, the European elections could also knock the pound too as it is used as a barometer of sentiments over Brexit.
Will the pound rise or fall against the Euro?
The pound could in my opinion fall against the euro as I believe the local elections will weigh on sentiment. The UK is in a very tricky political position and this could definitely harm the pound as investors become nervous over whether or not this will lead to a change in Prime Minister.
There has been increasing pressure on Theresa May to resign following the handling of Brexit so far. It will be very interesting to see if the British government can push through their Brexit plans or whether or not we will in fact end up in the European elections.
I think pound to euro rates are in for a busy period as we finish April and enter May. It is difficult to be overly positive over what direction events could take next for sterling and I think clients looking to buy euros with pounds should be preparing for a volatile few sessions ahead.
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