Yesterday, the EU commission published a communication to all member states asking them to step up preparation for a no deal with the UK, as they believe this scenario could happen and Brexit will have repercussions on citizens, businesses and administrations. The table below displays the range of exchange rates between Sterling and Euros during the past 30 days, showing the difference in return you could have received when selling £200,000.00.
|Currency Pair||% Change||Difference on £200,000|
The news came as the UK’s new Brexit chief Dominic Rabb arrived in Brussels for his first meeting with the EU in his new role. The Brexit story will continue to impact GBPEUR exchange rates and I expect the Pound could lose further ground against the euro throughout Q3. However there are rumours floating around the market that some EU officials have spoken about extending Article50 if the UK and EU were close to securing a deal which surely is a positive that a deal can be reached. For clients that are converting GBPEUR throughout Q3 I recommend outlining your position to your account manager and they will keep you up to date with the Brexit news that impacts exchange rates
IMF issues warning to the EU
It’s not all good news for clients selling Euros, as the IMF warned yesterday that growth numbers had peaked and that there are major risks which could impact the bloc in the months to come and even a hard landing could be on the cards. For the benefit of the reader a hard landing is when an economy that has recorded a period of rapid growth, all of a sudden the economy has a complete U turn and experiences a severe slowdown. The IMF went on to state that the global trade war, Brexit and the change in monetary policy are the reasons why a hard landing could materialise. The problem the bloc has is that Donald Trump doesn’t seem to be fazed if a trade war occurs, it seems all outcomes or on the table in regards to Brexit and some member states within Europe want the ECB to tighten monetary policy.
All eyes will now turn to the ECBs interest rate decision next week. Could it be the case that they Mario Draghi makes a U turn and extends the QE program into 2019, this surely would make Euros cheaper to buy?
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
From the moment I spoke with Dayle he was very friendly and explained how Foreign Currencies Direct operated. He also explained about the fluctuating Sterling/Euro market. Would definitely use the company again & recommend them to family & friends.
I’ve dealt with Dayle Littlejohn for over a year now and can honestly say I’m completely satisfied. He has always been totally efficient and has never failed to deliver consistently excellent service. I shall continue to use him and the company for currency conversion for this simple reason. Well done.
Brilliant company, well organised, helpful and Dayle who I deal with is extremely professional. I highly recommend this company who I have been dealing with for the past 2/3 years.