Sterling-euro exchange rates have been fighting back in the last couple of weeks after hitting the lowest level to buy euros with pounds since the second week of March. Indeed, the recent lows hit then were the lowest level seen since the credit crunch twelve years ago.
This brief respite for the pound vs the euro has come as very welcome news to those people looking to send euros for a property purchase or indeed sending small amounts of money to France, Spain or any other European country.
What Has the UK Goverment Done to Support the Economy
With the UK now in lockdown, we have seen the Bank of England announce monetary policy by cutting interest rates recently as well as introducing further Quantitative Easing measures so far with £200bn being pumped into the programme to support the UK’s financial system.
The British government has also announced plans to allow firms to furlough employees which allows them to still get paid whilst the economy struggling on. The other good news is that self employed people have also been providing with financial support for the timbering and this appears to have allowed the economy to stabilise as much as it can in such uncertain times.
This weekend it has been suggested that the UK could be considering reducing lockdown plans within weeks if there are signs that the epidemic is slowing down. According to Professor Neil Ferguson (from Imperial College London) who are advising the government on its response the expectation is that the epidemic will reach plateau in the next ten days, but he was also insistent that people listen and heed the government’s advice.
Meanwhile, Boris has encouraged people to stay at home in order to keep the virus at bay. In terms of the impact of sterling-euro exchange rates could this be a positive sign that we may be seeing a small amount of light at the end of the tunnel?
Testing people in the UK appears to be the strategy that the UK wants to adopt and the health secretary has committees to testing 100,000 per day in England by the end of April.
With so much economic data due out in the next few weeks which will include the period when both the UK and the Eurozone have been in lockdown this could see a lot of movement on Pound vs Euro exchange rates.
Therefore, it is crucial now more than ever that you’re well prepared to move quickly by using a specialist foreign exchange provider who will be able to keep you updated with what is happening to GBPEUR exchange rates.
If you’d like to discuss these factors and how they could impact your currency exchange, you can reach me directly using the form below.