Pound to Euro exchange rates have had a turbulent time this December, as the UK election throws up some increased concerns surrounding what lies ahead for the UK politically. Whilst Boris Johnson has been elected on a promise to ‘Get Brexit done’, the market’s understanding of what Brexit means remains uncertain. The pound has risen following the election as the market embraced the certainty of a Conservative led majority, however the pound has since weakened as it becomes apparent that Boris will still be keeping the threat of a no-deal Brexit up his sleeve.
We know the market has concerns over a no-deal result and might well find sterling losing value as it becomes a more likely prospect. The prospect of no-deal has weakened the pound as it is envisaged to lead to a more complicated trading relationship with the EU, the UK’s biggest export market. The inherent uncertainty of no-deal is therefore a factor to consider for the pound, sterling might well find itself continuing to struggle on this premise.
Looking Ahead to Next Week
Expectations for the GBPEUR exchange rate may continue to be linked to the outcomes on Brexit, but even with the Withdrawal deal being passed, the market may well need some further clarification on what Brexit actually means, before it can find some clearer direction itself. Looking into 2020, the political and economic fallout on Brexit will continue to be monitored and whilst sterling does appear to have benefitted from the majority the Conservative Party has achieved, the predicted outcomes on Brexit may well be some of the more significant drivers ahead.
If you are looking to buy Euros over 1.20, or sell Euros at 1.10, why not speak to our team who can provide updates on the markets and our services, and how we can help to track and trade at your desired rate.