Will GBPEUR rise hit parity?

I do not believe the pound can fall below parity but we might learn the coming weeks and months about just how likely it is. With the trends that seem in motion at present the outlook for the pound remains very bleak and the outlook for the Euro appears very positive. The Euro is beating the pound on many fronts most notably in the political stakes but also the economic ones too. In fact if you are looking to see the pound rise against the Euro I think you are really struggling to gauge just where any good news will come from!

Most likely for the pound could of course be the prospect of some good news for Brexit, but the Euro might weaken too. The thing with Brexit is that the likelihood of any good news seems quite far off in the distance. In fact there might not be any good news for many years to give investors reasons to start backing the pound. The problem is too that with the Brexit, all the whilst we await further news on what is will actually mean, the UK economy suffers, so does the pound and so does life for Euro buyers with pounds.

Consumers in the UK initially reacting on a wave of optimism to Brexit are now gently beginning to come to terms with the complexities. The seemingly free money racked up on loans for cars, shopping and entertaining themselves won’t just be available forever. Consumer spending has slowed as has business confidence. This is all weighing on the pound and with the German election in September seeming to point towards a Merkel victory, further Euro strength could be up ahead. Parity might not be precisely on the cards but lower rates than today seem likely!

If you have a transfer buying or selling the pound and Euro then making plans around the latest sentiments is key to avoiding unforeseen extra costs. If you wish to get the latest news and information on the market and your situation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for getting in touch and I look forward to hearing from you.

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