Over the last 8 weeks, pound to euro exchange rates have dropped 5%. To put this into monetary value a €250,000 purchase now costs an additional £11,450. The pound has declined in value due to the chances of a no deal Brexit increasing. As it’s been highlighted over all media stations, front runner Boris Johnson has made it clear that the UK will be leaving the EU with or without a deal at the end of October.
New UK Prime Minister to be announced on 23rd July
This month the 160,000 Tory members will vote to decide who they want to be the next Prime Minister and the verdict will be announced on the 23rd July. If the polls are correct and Boris takes over at No. 10, the chances of crashing out of the EU without a deal increases, therefore I expect the pound to face further pressure against the euro. However if Jeremy Hunt manages to beat the odds and win, the pound could recover some of the losses it has seen over the last 8 weeks.
Pound to euro predictions for 2019
To forecast Pound to euro rates for the remainder of the year, I am predicting that Boris will become the next Prime Minster. Therefore throughout August we will find out more in regards to how the former Mayor of London wishes to proceed.
Regardless of who takes over, the EU’s position I believe will remain clear and the withdrawal agreement will not be changed. Therefore this could put further pressure on the pound. However come the end of October, I don’t believe the UK will crash out of the EU without a deal as MPs within the House of Commons will find a way of blocking it. In fact, the most likely option I believe will be a snap General election which Boris Johnson himself calls.
For clients that are buying euros, an uncertain time ahead is on the horizon. Therefore, if you buying property in Europe or have to pay a company invoice, buying euros upfront I believe is your best option. For clients selling euros to buy pounds, you are in a fantastic position. Exchange rates have dropped 5% in 8 weeks and uncertain times lay ahead. If I was in your position I would outline your requirements by filling in the form below, this will send your message directly to me and I will keep you up to date as developments unfold.