Promising news of a Brexit compromise boosts GBP/EUR rate
The pound to euro exchange rate has jumped to 1.1061 on the interbank exchange today, representing the best time to buy euros with pounds since July 29th. The improvement is following news that German Chancellor Angela Merkel will consider a change in the current stance from the EU towards the UK. Expectations that perhaps the Irish backstop issue could be resolved have helped the pound to shake off some of the no-deal blues which had seen GBP losing ground in recent weeks. The pound to euro exchange rate has now risen to fresh highs, and the move higher, from 1.0919 to 1.1061 on the interbank exchange is better news for euro buyers.
What happens next will be determined largely by the continuing changes on Brexit ahead, the pound has been notably sensitive to the Brexit news and this expectation may continue. Boris Johnson will face a tricky task in parliament with his majority cut to just 1, putting pressure on the government. Jeremy Corbyn has threatened the vote of no confidence which could see a General Election or other outcomes. We know sterling is very sensitive to the political news and it will of course be very interesting to see how not only the news unfolds, but also how the pound will react to the various outcomes.
ECB looks at further monetary easing
The euro is also under some pressure, with signs the European Central Bank will look to cut interest rates or perhaps look to other forms of monetary easing. Clients with a position to buy or sell euros will have plenty to discuss ahead, if you are considering a transfer soon then please do speak to our team. Whilst we cannot tell you exactly what will happen ahead, we can highlight some of the options available to clients looking to transfer currency in the future. We look forward to hearing from you.