Will GBPEUR rise or fall over December?

The pound is very volatile against the Euro on the shifts in the Brexit negotiations! GBPEUR rose by almost 1.5 cents against the Euro hitting some of the best rates in 3 months but the good news did not last with the DUP (Democratic Unionist Party) failing to back up Theresa May’s new position. This has seen sterling slide back below 1.13 this morning which is presenting a good opportunity for Euro sellers to buy pounds which might not last!

The overall impression is that the pound will rise further once any kind of deal is struck so if you need to buy pounds with Euros moving on this opportunity is wise. The flipside is that should the negotiations surprisingly break down and the DUP withdraw support for the Conservative Party, sterling could fall much further.

For the pound, there is more important news on the economy this morning with the latest Services PMI (Purchasing Managers Index) data released at 09.30 am. If you have a transfer to make soon then today’s data could be key to short-term movements. Whilst the headline Brexit news will be key to influencing the overall position I would not be surprised to see the pound strengthen on the back of this news as Services are a key component of the UK economy.

GBPEUR is extremely volatile at present as the markets tried to second guess the outcome of the Brexit negotiations and also the Spanish Catalonian election. If you have a transfer to make in the future this will be key too to movements on the Euro.

For more information on the GBPEUR forecast please email me Jonathan Watson on jmw@currencies.co.uk

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