Could Brexit send Sterling lower against the Euro? (Tom Holian)

The fears caused by the Brexit talks continue to weigh heavily on the Pound vs the Euro which is now trading at its lowest level to buy Euros with Pounds for 8 years.

The previous time the GBPEUR rates were lower than they are at the moment was back in 2008 during the credit crunch era when Sterling crashed against all major currencies including the Euro.

A lot of the large banks have been predicting that the Pound could hit parity vs the Euro and at the moment I am finding it difficult to work out how the Pound will be able to recover against the Euro whilst the uncertainty surrounding Brexit continues.

Indeed, the Euro has been trading at 18 month highs against the US Dollar as the suggestion is that the European Central Bank may look at tapering their current Quantitative Easing programme which could see further strength for the Euro vs the Pound.

In the short term we may see some small spike for Sterling owing to profit taking but medium to longer term could see GBPEUR rates lower than current levels.

 

A lot of my clients have been using a forward contract which allows you to secure an exchange rate for a future date for a small deposit and this has worked out very well for many of my Euro buyers over the last few weeks.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

 

For more news on foreign exchange rates and to request a free no-obligation quote visit www.currencies.co.uk