Pound to Euro forecast: Will the Pound increase vs the Euro?
The Pound has recently hit its lowest point against the euro in six months. Sterling has come under enormous pressure against a number of different currencies owing to the political landscape.
We are only a few days before we will know the next leader of the country. The vote is due to conclude early next week so by Tuesday we should know if Boris Johnson or Jeremy Hunt has won. The expectation is for Boris to win so could this be the catalyst to provide the pound with some support?
I think we could see some small gains for the pound vs the euro but any upside may be limited. Typically, when a general election is held this will often help the currency. However, the difference this time is that this is simply a leadership election. Therefore, this is why I think the positive movements for sterling may not last that long.
Overall, the real problem for pound euro exchange rates remain that of Brexit. We are still no closer to having a deal resolved and we appear to be running out of time. The summer recess means that talks will not progress much until early September which means only two months before the current deadline set for the end of October.
Boris Johnson looks to call a general election: Will we see a general election this year?
The other problem facing sterling is that we could even see the possibility of a general election. With Jeremy Corbyn’s popularity waning this could be the chance that the Tories are looking for to gain more power.
According to reports Betfair are offering a 44% probability of an election during 2019. Meanwhile, Ladbrokes are predicting a 44% chance. There is a lot of uncertainty ahead for the pound owing to a number of reasons.
Therefore, if you’re in the process of buying a property in Europe it may be worth looking at buying a forward contract. This allows you to secure a rate for a future date which means if the market falls you have already pre-bought at a better exchange rate. To find out more or a free quote then contact me directly and I look forward to hearing from you.