Will GBPEUR now rise or fall?

The pound could easily find further favour against the Euro as we get closer to understanding the outlook on the Brexit. General expectations for the pound centre around progress on the Brexit which is looking like it could actually pass off without as much pain as previously imagined. The progress we made in December is feeding through into confidence for the year ahead, personally, I am very concerned about what is in fact a real lack of progress.

The expectations have now been set very high for the pound which is actually very close to the pre-Referendum highs on a trade weighted basis. This is not the case against the Euro however which is performing very well against the pound owing to the continued economic strength for the Eurozone. Recent growth figures were the best in ten years and investors are now expecting more good news down the line.

GBPEUR appears like it could trade higher with the Italian election in March but personally I think the range we will occupy now would be closer to the 1.10-1.14 levels. Once the reality of the lack of progress on Brexit becomes apparent we are likely to see the pound slide, we only have a few months before this needs to be completed.

If you need to make a transfer involving the pound or euro, then I would be suggesting to make some plans in advance. We offer a specialist service to help with the timing of any transfer for the future, by closely monitoring the levels we aim to secure you more favourable level.

For more information at no cost or obligation please speak to myself Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to assisting you in the future.

 

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