Pound to Euro: Michel Barnier’s Positive Comments Lead to Further Sterling Strength

pound to euro: Michel Barnier’s positive comments lead to further Sterling strength

This morning the sentiment around a Brexit deal increased again as Chief EU negotiator Michel Barnier commented that good progress had been made on a deal, however that there were still a few stumbling blocks that remained.

The day so far has had numerous comments from EU officials, some suggesting that a deal may be reached by Friday only for others to suggest that this may actually be unlikely and that talks could once again roll into next week.

The Brexit deal see-saw is well and truly in full swing at the moment, however it does appear that there is a much higher likelihood that a deal will be done and on that basis the pound has managed to make gains and retain them over the course of the trading week.

Should a deal be announced then there may be further strength to be had for the pound, however caution should remain that there is no guarantee that a deal will not fall through and a serious drop in the value of the pound could happen very swiftly if any hint of a no deal comes back to the markets.

The rest of the trading week for the pound will likely have the Brexit trade deal as the key focus and the spotlight will be on any comments from members of either the U.K or the EU negotiating parties, or key leaders involved in making this deal official later down the line.

It is likely that Sterling exchange rates will be particularly volatile over the course of tomorrow in advance of the weekend, and as we close in on the festive season next week will likely lead to a lot of sterling exchange rate movement too. During the festive season there are much thinner trading levels, so even the small pieces of news can have a much larger impact on the markets than you would normally expect.

With this in mind this is a festive period like no other, so if you have a larger exchange to carry out for a property transaction or for your business tit is important to not just be focussing on your leftover turkey as you could end up being stuffed yourself should the markets move adversely for you.

Feel free to get in touch with us today and let us do the watching for you with a variety of tools available to ensure that you can relax over the Christmas period and that your overseas property won’t cost you any more than you bargained for.