What will happen to the Euro once the UK invoke article 50? Who will fill the large financial gap the UK has left behind? Will other EU members hold their own Referendum?
We saw an 11 cent fall in just a few hours in the Euro’s favour following on from the Brexit result as confidence in the Pound fell dramatically. However, it was not all good news for the Euro as it fell against the US Dollar as a breakdown in the European Union is likely to cause problems for the single currency in the future as well. The UK has yet to invoke Article 50, which is the official announcement of the UK’s plan to leave and even when it does decide this we are still 2 years away on us leaving.
There have been suggestions that now the UK has voted to leave other may follow suit.
The Netherlands have been mooted as the most likely nation to look at holding a referendum of the topic of the EU and a recent Dutch survey suggested that 54% of those polled wanted to have a referendum.
I still believe that we will continue to see Sterling struggle against the Euro in the short term but if there is an appetite for others to follow the UK’s example this could cause the Euro to weaken.
On Friday we had our busiest day in the company’s 17 year history with huge volumes of clients looking to sell Euros to buy Sterling to take advantage of these swings. I fully expect the demand to continue so if you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then make sure you keep in close contact with the company during this hugely volatile period.
Typically I would also include economic data in this currency section but there is a clear overriding factor affecting Sterling Euro exchange rates and that is the topic of the Brexit vote. German Prime Minister Angela Merkel does not want to rush Britain into making a quick decision on its ‘divorce’ with the EU. Most others have stated that they want the negotiations to start as quickly as possible otherwise a delay could result in increased appetite for other countries to look at holding their own EU referendum.
If you have concerns that the UK Referendum result may impact your currency needs over the coming weeks, especially with a number of key questions still unanswered, speak to one of our brokers today on 01494 725 353 or email me here for further assistance.
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!