GBPEUR faces up to reality!

The pound to Euro rate has dropped back into the lower 1.13’s as investors brace themselves for the realities of Brexit to hit home. Expectations have been very high recently following a number of high profile comments from the various actors in the Brexit pantomime. Angela Merkel stated she was looking forward to a successful relationship with the UK and Philip Hammond was clearly laying the case for a softer Brexit.

Fast forward a week and the reality of the difficulties and weakness of the UK’s Brexit position has become more apparent. Headlines surrounding UK government infighting has left the pound struggling to hold onto last week’s gains with a move back into the 1.12’s highly likely. Of course, this behaviour for the pound against the Euro shouldn’t take us too much by surprise, it is what has been happening on the pair ever since the EU Referendum became a market concern back in January 2016.

With the Euro remaining strong against the pound and continuing to be an expensive currency to be betting against, there is the real prospect of some positive news making it even more expensive for Euro buyers taking a gamble on their purchase. Important economic data this week will be Thursday and Friday when we have a whole new set of economic data released which will give some further clues on the state of the UK economy.

If you have a transfer buying or selling the pound against the Euro then making plans in advance is crucial to giving yourself the best chance to maximise the position. General impressions from the market are that we will see sterling rise as Brexit becomes better understood but this will likely take month or years to manifest.

If you have a transfer buying or selling the pound against the Euro then there are a number of issues to be conscious of to make sure you are maximising the position. For more information at no cost or obligation please don’t hesitate to speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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