A lot of focus has been on how an exit from the EU would impact Sterling, but what implications would it have for the Euro?
Since David Cameron announced the UK would hold a referendum GBPEUR exchange rates have fluctuated over 8 cents. The general consensus is if the UK were to leave the EU the pound would plummet. Whereas if the UK stay part of the Union the Pound would rise. Many banks including HSBC have indicated GBPEUR could fall to parity if the UK were to ‘Brexit’ however I feel this is a scaremongering tactic.
I am in no doubt a ‘Brexit’ would devalue the Pound however I believe rates will fall to the mid 1.10 for a short period and then all eyes will turn to the other countries within the Eurozone.
It was only six months ago Greece were indicating that they could default due to debt repayments and my point is if one country leave the European Union we could see a domino effect and other countries follow suit. If this did occur this could be the start of the end for the Euro and therefore the value of the Euro could begin to plummet.
At 10am yesterday morning the Eurozone revised their latest Gross Domestic Product numbers. Year on Year numbers increased from 1.5% to 1.7% and quarterly figures also rose to 0.6% from 0.5% providing support for the Euro. However shortly after Chief UK and European economist Howard Archer, exclaimed the data was positive however other economic events globally such as the UKs referendum is going to slow growth within the Eurozone.
The EU referendum is having a noticeable impact on the Pound and Euro and we therefore recommend you get in touch with our brokers to discuss your options in the event you have a currency transfer requirement. Give us a call on on 01494 725 353 or email email@example.com for more information.
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