Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Euro rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
Where political and economic uncertainty is weighing heavily on the pound, the Euro continues to benefit having removed much of the political and economic uncertainty holding it back. With the new French President Macron neutralising the populist revolt that was feared would sweep Europe, investors are backing the strength and direction of the Eurozone. Expectations the ECB (European Central Bank) might scale back on their stimulus and improving economic data all point to the single currency continuing to be a very expensive currency to bet against.
Just like David Davis reportedly rolled over very easily in the first round of Brexit negotiations this week, so too is the Euro winning the debate against the pound. Clients with fairly imminent requirements to purchase Euros with pounds should I believe be looking to capitalise on any spikes to take the risk out of the market.
Excellent news for expats is that their rights are top of the agenda in the Brexit negotiations which commenced this week. With around a million Brits estimated to be living in the EU some certainty around this issue is good news for both those living in the EU or considering that dream overseas holiday home purchase.
Key important economic data to move the market in the Eurozone today is the Economic Bulletin at 9 am UK time. Any hints as to the likelihood of changes in monetary policy will be important although I don’t’ expect anything new to move the market following the ECB meeting two weeks ago. Tomorrow we have Manufacturing PMI which looks likely to confirm the economic improvements in the Eurozone and should continue to make the Euro an attractive currency to hold.
Euro sellers for pounds are in a very strong position although the lack of hard Brexit and the potential for a UK interest rate hike are acting as a backstop to a significant move to the 2016 lows on the GBPEUR pairing. Clients selling Euros to buy pounds should be very conscious we are very close to the best rates to sell Euros in 2017. Whilst there is potential for further opportunity a €200,000 conversion today versus 2 months ago would net you almost £10,000 more in pounds.
This pain is unfortunately to be borne by Euro buyers who have been left disappointed by the outcome of the UK election. Recent events remind us nothing should be taken for granted on exchange rates and clients looking to buy Euros should be keeping in close contact with us to help ensure the smoothest and least stressful passage for their exchange.
Thank you for reading my Euro currency report, 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 here.
Jonathan Watson as ever, ensures a smooth, reliable and trustworthy transaction for the second time of service! Delightful to deal with – efficiency personified. Thank you Jonathan. Would recommend highly – 5Star.
Excellent initial guidance, and during the transaction regular communication and updates. Dealing with Jonathan Watson was a pleasure. Very reassuring.
Jonathan Watson provided very helpful advice throughout the process, as well as immediate responses to our inquiries. He and his team were patient and thoroughly professional, which helped us through some stressful moments following the sale of our property in France.