The pound has been rising against the euro in 2019 with some of the best rates to buy euros in almost 2 years.
Cross party Brexit talks
Clients looking for a higher price might find some comfort from any breakthrough in the Brexit negotiations, plus the potential unsettling of the euro following the European elections on the 23rd May. My personal view is that there will be no quick resolution from the Brexit stalemate, and that sterling will continue to remain on the weaker side and may well be at risk of losing further value. GBP/EUR level might hit 1.20 but I feel clients buying Euros should be making careful plans that include the prospect of sterling falling.
There is a major concern over whether or not Theresa May will ultimately find her feet in government, or whether we will see a dip in the sentiments relating to her position. There has been a growing belief that Mrs May will lose power, which would see the pound dropping in many cases. However, there is a view that should Mrs May be forced from government, then any new direction on Brexit could actually help the pound to rise.
The euro looks like it will continue to remain in the firing line with numerous concerns over just how investors will react to the increasing threats of trade wars negatively affecting the Eurozone economy, as the market becomes concerned with the global economic outlook. I expect that the Eurozone and the euro will struggle to see too much confidence with the euro likely to remain under pressure, if the pound can find some form and belief on the back of Brexit, then we could well nudge closer to that 1.20 level.
If you are considering a trade to buy euros at the 1.20 level, please do not hesitate me to discuss all of your options and how we might be able to assist, in monitoring and tracking the events that might lead to the 1.20 rate of exchange on pounds to euros.