With all eyes on how the UK election will affect the EUR/GBP exchange rate, this update discusses the potential outcome and some other factors that could affect Euro exchange rates in the next week. In the table below you’ll see high to low GBP/EUR rate movement when exchanging £200,000 to Euros in the last 30 days.
|Currency Pair||% Change||Difference on £200,000|
With the uncertainty due to the UK election, Euro sellers have been growing in confidence over the last two weeks, with current interbank rates yesterday as low as 1.145. This really is a very good opportunity for those converting Euros to Pounds to act quickly and take advantage of any gains from the last two weeks. Today really could be the last day in which we see these attractive levels for Euro sellers for some time and in my opinion, I feel the rates could start to move away from the current levels.
A Conservative majority could be bad for those with a Euro sell back requirement, and in my view if the Conservatives manage to get the 326 seats they need to gain an overall majority then I think we could start to see the GBP/EUR rates head back up towards 1.19-1.20 and this kind of sharp spike would not be good for those selling Euros. If you’re planning on repatriating Euros back into Sterling in the short term future and would like to discuss the current levels with one of our many experienced traders, feel free to get in touch with your trader today.
With Brexit talks due to get underway very shortly the outcome of the election will be key as to which kind of Brexit will be negotiated for the UK. With the PM insisting that no deal is better than a bad deal and Jeremy Corbyn seemingly keener on a softer Brexit, the coming weeks and months will be extremely interesting, and could pave the way for two very different types of Brexit plans.
There is a chance today the European Central Bank (ECB) may look to taper their Quantitative Easing (QE) program which could be positive for the Euro. It is thought that this may not happen this month but any indication of changes to the QE programme at 13:30pm could add to election volatility.
On Tuesday morning, we will have growth figures out for the Eurozone and expectations are for the growth rate in Europe to remain consistent but we have to remember that these releases do not always come out as expected. Couple this with inflation data for the UK also released on Tuesday morning and those with a GBP/EUR requirement may wish to let us know before tomorrow morning so that we can keep you fully up to date with how this events unfold, along with any major moves off the back of the election result tomorrow morning.
Thank you for reading my Euro currency update. If you have any questions about Euro exchange rates I would be more than happy to discuss them – you can contact me with any queries at email@example.com. Alternatively, you can reach any of our currency brokers here on 0044 1494 725353.
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