GBP/EUR Forecast – Sterling Stutters Following Leaked Brexit Report (Matthew Vassallo)

It’s been a fairly volatile day for GBP/EUR rates today, with the pair fluctuating between 1.1339 & 1.1425.

This morning’s Eurozone Unemployment Rate came out as expected at 8.7% but did little to shift the markets.

Sterling was under pressure throughout early trading, with the single currency finding plenty of support around 1.14. However, the Pound recovered as we headed towards the close of European trading, despite falling away from the 8 month highs seen last week over recent days.

One of the reasons it came under pressure this morning was a leaked Government report, which indicated that the UK will be worse off after Brexit. The report covered all three Brexit scenarios, including a free trade agreement, access to the single market, or the worst case scenario of no deal being reached at all.

The Government were quick to react and said the findings were only a preliminary assessment but the news is hardly likely to inspire confidence amongst investors. As such the Pound’s value dipped, before its mini recovery during the latter part of the trading day.

Despite this positive recovery, the Pound could come under further pressure over the coming days as Brexit talks starting to dominate the headlines once more.

With phase two talks not under way and trade discussions starting in March, it is a key point in the transition.

The EU have already outlined their position and it did make for positive reading for those driving the UK’s negotiations and with Brexit secretary David Davis already claiming the UK would be opposing many of the suggestions put forward.

The uncertainty of the outcome is likely to put further pressure on the Pound over the coming weeks and beyond and as such, I would be looking to protect any short to medium-term GBP currency positions if feasible.

If you have an upcoming GBP or EUR currency transfers to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

 

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