Clients looking at buying Euros with Sterling saw rates marginally improve last week, as it was announced that Theresa May would have to go to parliament to vote on invoking article 50. Clients looking to buy Euro’s will now be keenly awaiting any further developments. The Pound climbed nearly 2% against the Euro, meaning a transfer of £200,000 would have gained you an extra €4000 if timed correctly.
It appears as though the markets have reacted positively in light of any news that Theresa May’s hard stance to negotiations will be blocked.
She has since asked the Europhiles to accept what the people decided and declared that if she has to go to parliament the UK would be worse off as a result. If the government loses the next stage of the legal battle, which is expected to be an appeal to overturn the courts decision then the government may have to disclose the plan for Brexit to allow them to be debated in the House of Commons which I personally think could help improve rates for Euro buyers.
The Euro could be set for a busy week this week. With the next US president set to be announced and with US Dollar to Euro rates being the worlds most commonly traded currency pairing, if the Dollar starts to gain momentum, this could potentially spell trouble for the Euro as investors take their funds from the Eurozone and into the Dollar, which could present an opportunity for any clients looking at buying Euros.
Sterling should keep its recent pressure on the Euro as a result of the political news we witnessed last week as Theresa May shifts her focus to India to start negotiating an improved trade deal, which involves visa liberalisation to allow more Indians to work in the UK. I wouldn’t expect further news regarding the decision for the government to go to parliament until she returns.
Focusing on the Eurozone, today the latest survey results from the purchasing managers for the retail sector will be released, a sector which has been in focus since the referendum. With inflation within the Eurozone starting to pick up, this could affects households’ ability to spend even further. If this figure comes in worse than expected, this be Euro negative.
A busy week for the Euro but most of the spotlight will be focused on tomorrows Presidential election and its subsequent results on Wednesday. Those looking to buy or sell foreign currency may benefit from contacting me here.
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