What can we expect in 2018 on GBPEUR exchange rates?

2018 is looking like another volatile year with plenty of fresh news and developments in a number of areas which could see changes and shifts in the GBPEUR exchange rate. Notably, Brexit will continue to be a key driver for the pound which will see the rates inextricably linked to shifts in sentiment over the Brexit. The Euro has a number of key hurdles to overcome, mainly political like the UK.

If you are considering buying Euros you would be forgiven for checking the headlines over Angela Merkel and the Spanish situation and expecting the Euro to be much weaker. The outlook for the Euro is however still very positive despite the fear and uncertainty surrounding the political situation. Yes, the outlook for the Euro has deteriorated slightly but the prospects for the Euro still remain rather positive.

All in all, the uncertainty surrounding Brexit will I feel be more of a drag on GBPEUR than the political uncertainty in the Eurozone. We should see the market shift according to the run of events which could see the Euro weaker in March when we have the Italian election. Further negative developments on the Spanish or German situation could weigh on the Euro but as mentioned I do feel the weakness of the pound will remain more in focus once again in 2018.

If you are buying or selling Euros for pounds the exchange rate is at an important junction as we have more reasons to be positive over Brexit which has helped the pound, but a number of challenges remain ahead. If you wish to get an overview of the position or discuss further a forecast relating specifically to your position, please feel free to contact me Jonny to discuss further your currency situation.

To learn more about the year ahead on GBPEUR exchange rates and discuss options and strategy please contact me on jmw@currencies.co.uk.

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