Will GBPEUR keep on rising?

The pound has finally bounced back against the Euro as weakness and uncertainty in the German political situation opens the door to a more unsettled Euro. The prospect of a second election or Angela Merkel stepping down as Chancellor has seen the Euro undo many of its gains over the last few weeks. What lies ahead for the German Chancellor and how could this influence the Euro?

I expect that there will either be fresh German elections or that Merkel will be forced to step down in order to allow a fresh coalition. It appears that the outlook for the GBPEUR is now much better for clients looking to buy Euros with pounds, we have seen the rate rise above 1.13 this morning.

News that the UK is agreeing a Brexit bill of up to £40bn is also helping the pound which is now benefiting from some of the uncertainty in Germany. With the Spanish Catalonian election next month and then the Italian election next year the outlook for buying Euros has suddenly improved. If you have a transfer buying Euros then making some plans around this potential rise is a smart move since Euro buyers have not had a huge amount to cheer in recent weeks!

We are close to the best time in 3 months to buy Euros with pounds and the rate could rise even further depending on the way the market is going. Overall impressions of the rates are that of course sterling could come under renewed pressure owing to Brexit but for now the tide has turned. Euro buyers should not be too greedy but should be carefully making plans around this improvement.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you in the future.

 

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