The Euro is now trading at its best level to buy Sterling all year as the recent papers published by the UK Government on how to deal with a no-deal Brexit has caused a big sell off in the value of the Pound. The market report below looks into the ways this is likely to impact the single currency as the prospect of a no deal Brexit grows ever closer. We've shown in the table below the difference in Euro return you could have made when selling £200,000.00 during the past 30 days depending on the exchange rate at the time of your transfer.
|Currency Pair||% Change||Difference on £200,000|
Indeed, the Pound is now at its lowest level to buy Euros in almost 12 months but the question to many should be how long will this opportunity to sell Euros at these levels last?
The Euro has been gradually gaining strength during the last few weeks and although has experienced the odd period of weakness the over-riding factor maintaining its value against the Pound has been that of Brexit.
It appears as though the uncertainty is not going anywhere anytime soon and with the UK Government’s decision to release the next set of the 80 papers at the end of September we could see the Euro move even higher against the Pound sending GBPEUR exchange rates to below 1.10.
Yesterday morning whilst the UK was taking its August Bank Holiday Germany announced its latest IFO (Centre for Economic Studies Institute) Business Climate survey for August, which surveys more than 7,000 companies on their outlook of the business situation in the country.
The figures came out much better than expected and this led the Euro to gain strength vs both the US Dollar and the Pound during yesterday. We could see further gains for the single currency against the Pound towards the end of this week as there is a whole host of data due on Thursday.
We begin with the latest set of German unemployment data which has been doing very well falling to just 5.2% recently.
Following this comes German inflation data and as Germany is the Eurozone’s strongest economy any positive signs will usually result in Euro strength.
We end the week with Eurozone inflation data for August and this could provide us with some insight as to when the European central Bank may consider raising interest rates. Therefore, my prediction is that we’ll see the Euro end the week with a strong finish.
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.
As always, I got an excellent rate. Tom is always helpful and the whole process is extremely quick, efficient and simple.
Tom helped us so much explained every thing and got us a better rate to buy our home in Spain, when we had to pay for furniture went back again and he sorted a rate out for me.
Brilliant service, genuine advice and rapid transfer of money to our French bank account. Tom Holian seems like a friend although we’ve never met!